According to a new law passed by the country’s upper house of parliament on Monday, cryptocurrency companies in Kazakhstan may soon be subject to anti-money laundering (AML) rules, the local news agency Vlast reported.
The new law expands the country’s financial monitoring system to include providers of crypto services.
The new legislation will also create a legal institution for civil servants. When a company launches a cryptocurrency exchange service or issues digital assets, it must notify the Ministry of Digital Development, Innovation and Aviation in Kazakhstan. The institution will be responsible for conducting risk assessments and verifying compliance with the KYC and AML rules.
According to Vlast, Senator Olga Perepechina said that the financial control system in Kazakhstan does not currently cover legal entities that operate digital assets, regulate trade or offer services for converting cryptocurrencies into cash, tangible goods and other real estate.
The senator warned that the lack of oversight is contributing to the rapid spread of money laundering and terrorist financing, as well as the growth of the black market. He warned against encouraging cybercriminals, including terrorists, to use digital assets and electronic techniques in their calculations.
Related topics: Kazakhstan expects economic activity from cryptocurrency mining to be at least $ 1.5 billion over 5 years
However, this proposal was not approved by the country’s leader, Kassym-Jomart Tokayev. Last month, Tokayev called for “rapid” regulation of another cryptocurrency activity, bitcoin (BTC) mining, citing energy shortages in the country. This Central Asian country, which has one of the world’s cheapest electricity, has become a hotspot for bitcoin mining in the midst of severe repression from China.
According to the Cointelegraph, Kazakhstan expects crypto-mining to contribute at least $ 1.5 billion to the economy over the next five years. The country’s current mining hash rate is number two in the world after the United States.