The Senate of Kazakhstan approves legislation regulating crypto service providers

According to the new legislation passed by the upper house of the national parliament on Monday, Kazakhstan’s crypto business may soon be subject to anti-money laundering (AML) regulations because Report Reported by local news media Vlast.

The new law expands the country’s financial surveillance system to cover crypto service providers.

The new legislation will also establish a legal system for public officials. When a company launches its cryptocurrency trading service or issues digital assets, it must notify the Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan. This agency will be responsible for conducting a risk assessment and verifying that it understands your customers and whether the AML regulations are being complied with.

According to Vlast, Senator Olga Perepechina stated that Kazakhstan’s financial monitoring system currently does not cover legal entities that process digital assets, organize trade, or provide services to convert cryptocurrencies into cash, tangible goods, and other properties.

The senator warned that lack of supervision has led to the rapid spread of money laundering and terrorist financing crimes and the growth of the black market. She warned that cybercriminals, including terrorists, are encouraged to use digital assets and electronic methods in their settlements.

related: Kazakhstan expects the economic activity of cryptocurrency mining to be at least $1.5B in 5 years

However, the proposal has not yet been approved by the country’s President Kassim-Jomart Tokayev. Last month, Tokayev called for “swift” regulation of another cryptocurrency activity, Bitcoin (Bitcoin) Mining, noting the country’s electricity deficit. This Central Asian country with the cheapest electricity in the world has become a hot spot for Bitcoin mining. Strengthen the suppression of China.

As reported by Cointelegraph, within five years, Kazakhstan predicts that cryptocurrency mining will contribute at least $1.5 billion to its economy.The country’s current mining power is Second in the world After the United States.