Home News Kazakhstan Senate approves legislation regulating crypto service providers

Kazakhstan Senate approves legislation regulating crypto service providers

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Crypto firms in Kazakhstan may soon be subject to Anti-Money Laundering (AML) rules, according to new legislation voted by the country’s national parliament’s upper chamber on Monday, according to local news site Vlast.

The new law broadens the scope of the country’s financial surveillance apparatus to include cryptocurrency exchanges.

A legal institution for public officials would also be established under the proposed legislation. A company must inform the Ministry of Digital Development, Innovation, and Aerospace Industry in Kazakhstan when it establishes a crypto trading service or issues digital assets. The institution will be responsible for completing a risk assessment and ensuring compliance with Know Your Customer and Anti-Money Laundering (AML) legislation.

Senator Olga Perepechina told Vlast that Kazakhstan’s financial monitoring system does not now include legal firms that deal in digital assets, coordinate trade, or provide services for the conversion of cryptocurrencies into cash, physical products, or other property.

Lack of control allows money laundering and terrorist funding crimes to expand quickly

The senator cautioned that a lack of control allows money laundering and terrorist funding crimes to expand quickly. As well as the expansion of the black market. She cautioned that cybercriminals, especially terrorists, tend to use digital assets and technological techniques in their transactions.

Kassym-Jomart Tokayev, the country’s president, has not yet given his approval to the initiative. Last month, Tokayev, citing the country’s power shortage, asked for the “immediate” regulation of another cryptocurrency activity, Bitcoin (BTC) mining. Despite an enhanced Chinese crackdown, the Central Asian nation has become a Bitcoin mining hub. Thanks to some of the world’s cheapest power.

Kazakhstan expects cryptocurrency mining will contribute at least $1.5 billion to the country’s economy within five years, according to reports. After the United States, the country boasts the world’s second-highest mining hash rate.

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