January 21, 2022

Government of Kazakhstan closes country's banks and stock exchange

The chaos unfolding in Kazakhstan did not take long to affect the financial system of the country located in Central Asia. All financial institutions operating in the territory, such as banks and the stock exchange, were forced to close their doors on Thursday (6) by determination of the National Bank of Kazakhstan, the country's monetary authority. […]

The post Government of Kazakhstan shuts down the country's banks and stock exchange first appeared in Bitcoin Portal .

The chaos unfolding in Kazakhstan did not take long to affect the financial system of the country located in Central Asia.

All financial institutions operating in the territory, such as banks and the stock exchange, were forced to close their doors on Thursday (6) by determination of the National Bank of Kazakhstan, the country's monetary authority.

The information, released by Russian news agency Tass, came from a statement by the press secretary of the Central Bank, Olzhas Ramazanov.

In a statement broadcast on the Khabar 24 station, the secretary said that the suspension was a way of “protecting the life and health” of employees of financial institutions and consumers of these services.

In addition, he cited that action was necessary in view of "anti-terrorist operations carried out by law enforcement agencies and taking into account the temporary failures of the Internet".

The restrictions imposed on financial institutions are valid only for this Thursday (6), but it is still not clear whether the banks will function normally going forward.

It has already been noticed in other countries that have gone through similar situations of political tension, the population's access to banks — and consequently to their funds — is generally impacted.

When the Taliban seized power in Afghanistan in August of last year, for example, the population that rushed to the banks to make withdrawals was left empty-handed after discovering that the money had run out.

What is happening in Kazakhstan

Protests in Kazakhstan began with rising fuel prices, but soon gained momentum and began to reflect other grievances among the population living under the dictatorial regime of President Kassym-Jomart Tokayev, the replacement of the dictator Nursultan Nazarbaev who ruled the country for three decades .

The government, in turn, responded with violence and chaos quickly erupted in the country. People were killed and the population's access to internet and telephone services was cut off.

The chaos that has ensued in the country even affects the cryptocurrency market, as Kazakhstan is one of the countries in the world with the largest number of bitcoin miners, losing only to the United States.

Since the internet was cut off in much of the country, the computing power (hashrate) applied to the market-leading cryptocurrency network has dropped 12% .

The post Government of Kazakhstan shuts down the country's banks and stock exchange first appeared in Bitcoin Portal .

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