@$66333: Kazakhstan Senate Adds New Legislation to Monitor Crypto and Improve AML

The Kazakhstan Senate has given its approval on various amendments to prohibit companies being able to legalise unlawful funds, such as cryptocurrencies. Consequently, this will have an influence on organisations working with digital assets. Therefore, the new regulations will ensure that any crypto service providers will be carefully monitored by the country’s regulatory body.

Additionally, new legislation is being amended to improve AML (anti-money laundering) prevention laws and combat financial terrorism. The introduction of the new laws concerns the establishment of a legal institute of ‘public officials’ and the financial auditing thereof. Overall, these changes will improve Kazakhstan’s AML framework and many concerns regarding cryptocurrency platforms.

This coincides as the Sputnik Kazakhstan report discloses “to regulate the operation of virtual asset providers.”

Crypto Platforms to Be Subjected to Financial Monitoring

Senator Olga Perepechina stated that individuals issuing digital assets, organising their trading and those providing crypto services for the crypto exchange, including exchanging crypto into cash, valuables and other possessions are, at this time, outside the sphere of the current financial monitoring system.

Perepechina explained that this situation can progress to an increase in money laundering crimes, terror financing, and growth of this shadowy economy. She warned that these criminals are advised to use digital assets and the electronic transfer of funds.

Additionally, she refreshed memories that the country had already adopted a new law regulating digital technologies in June 2021. The law enables the issuance and circulation of digital assets in the country and at the Astana International Financial Centre (AIFC). Further, the government intends to monitor all financial activities carried out by such entities as it moves forward.