Kazakhstan parliament approves legislation to regulate crypto services
In Kazakhstan, a new legislation passed on November 8 by the country’s upper house in the parliament signifies that cryptocurrency business there might soon be subjected to Anti-Money Laundering (AML) regulations.
The new law mentions that the country’s financial monitoring systems would also cover all crypto businesses and service providers.
As per the fresh legislative changes, a network of the legal institution of public officials would be established. Further, whenever a new firm is launched in the crypto sector, the owners would have to notify the Ministry of Digital Development, Innovation and Aerospace Industry if it is to offer crypto trading or digital asset services. The government institution would then conduct a risk assessment to verify the Know Your Customer details whether the AML regulations are being followed.
As reported by the local news agency Vlast, Senator Olga Perepechina has stated that Kazakhstan’s financial monitoring systems at present do not include legal entities handling digital assets, conversion of crypto into cash and so on.
Senator Perepechina warned that the lack of oversight as such enables the virulent spread of money laundering activities, terrorism financing crimes, and the black market. Perepechina also added that cybercriminals and terrorists are constantly encouraged to utilize digital or electronic methods in their settlements.
The fresh proposal, however, has not been approved by Kazakhstan’s President, Kassym-Jomart Tokayev. Tokayev had last month called for the “prompt” regulation of cryptocurrency mining, outlining the country’s power deficit.
As the Chinese crackdown on cryptocurrency businesses intensify, the Central Asian nation of Kazakhstan serves as the new Bitcoin mining hotspot having some of the world’s cheapest electricity.
With the current trends in the country, Cointelegraph has reported that in another five years, Kazakhstan’s crypto mining would contribute at least $1.5 billion to its overall economy. At present, the country’s mining hash rate is second in the world after the United States.
