The Senate of Kazakhstan has approved a new law that will regulate the country’s cryptocurrency service providers, including exchanges and other businesses. The bill was passed out by a unanimous vote in favor on Friday night.
Kazakhstan Senate approves legislation regulating crypto service providers. The bill will now go to the Kazakh parliament for approval. Read more in detail here: crypto regulation news.
Crypto firms in Kazakhstan may soon be subject to Anti-Money Laundering (AML) rules, according to new legislation voted by the country’s upper chamber of parliament on Monday, as reported by local news site Vlast.
The new legislation broadens the scope of the country’s financial surveillance apparatus to include crypto service providers.
In addition, the proposed law would create a legal entity for public officials. A company must inform Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry when it establishes a cryptocurrency trading service or issues digital assets. The institution will be in responsibility of completing a risk assessment and ensuring compliance with Know Your Customer and Anti-Money Laundering rules.
Senator Olga Perepechina told Vlast that Kazakhstan’s financial monitoring system does not now include legal firms that manage digital assets, coordinate trade, or provide services for converting cryptocurrencies into cash, physical products, or other property.
The senator cautioned that a lack of control allows money laundering and terrorist funding to proliferate quickly, as well as the expansion of the black market. Cybercriminals, especially terrorists, are encouraged to collect their debts using digital assets and electronic techniques, she said.
In the next five years, Kazakhstan expects crypto mining to generate at least $1.5 billion in economic activity.
The idea has yet to be authorized by Kassym-Jomart Tokayev, the country’s president. Tokayev called for the “immediate” regulation of another cryptocurrency activity, Bitcoin (BTC) mining, earlier this month, citing the country’s power shortage. Despite an enhanced Chinese crackdown, the Central Asian country, which has some of the world’s cheapest power, has become a Bitcoin mining hub.
Kazakhstan expects cryptocurrency mining to contribute at least $1.5 billion to the economy within five years, according to Cointelegraph. After the United States, the country’s current mining hash rate is second in the world.
Kazakhstan’s Senate has approved legislation that regulates crypto service providers. The law will require the registration of all cryptocurrency operators, including ATM operators and exchanges. Reference: cryptocurrency atms.
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