The Senate of Kazakhstan passes legislation to put crypto platforms under financial surveillance – overseeing Bitcoin news
The Senate of Kazakhstan approved an amendment aimed at preventing the legalization of illegal funds, which will affect companies that handle digital assets, etc. The new legislation puts crypto service providers under the country’s financial regulatory system.
Senator supports law on crypto services in Kazakhstan
Members of the Upper House of Kazakhstan’s Parliament recently passed new legislation aimed at improving the prevention of money laundering of criminal proceeds and the financing of terrorism. The main clauses adopted in the new law are related to the establishment of a “public official” legal institution and its financial audit.
These amendments aim to improve the country’s anti-money laundering framework as a whole, some of which involve cryptocurrency platforms. According to a report from Kazakhstan Sputnik, the author has proposed to “regulate the operation of virtual asset providers.”
In the plenary session, Senator Olga Perepechina (Olga Perepechina) pointed out that legal persons that issue digital assets, organize transactions, and provide services to convert cryptocurrencies into cash, valuables and other properties are currently not under financial surveillance Within the scope of the system.
According to Perepechina, this has led to the spread of criminal activities related to money laundering and terrorist financing, as well as the expansion of the shadow economy. The representative warned that criminals, including terrorists, are encouraged to use digital assets and electronic means in their settlements.
Olga Perepechina reminded that Kazakhstan passed a law regulating digital technology in June this year. It allows the issuance and circulation of digital assets in the country and the Astana International Financial Center (international Finance Center). Legislators now want to place entities carrying out such activities under financial supervision.
The new regulations will require crypto companies to notify their respective government agencies when they start or terminate operations. The plan is to authorize the Ministry of Digital Development, Aerospace and Defense Industry to serve as the main regulatory agency.
Another proposal is to expand the powers of financial supervisory agencies, for example, by providing them with unrestricted access to the country’s legal entity registry. Perepechina believes that this is necessary to ensure the transparency of official information about the legal ownership of business organizations.
After the Senate voted, the “Revision and Supplement to Certain Legislative Bills of the Republic of Kazakhstan Regarding the Legalization of Income from Crimes (Money Laundering) and the Financing of Terrorism” has been sent to the President of Kazakhstan, Kasim-Jomart Tokayev, who must signature.
Concerned about Power deficit Facing Kazakhstan, Tokayev recently Call “Emergency” regulation of Bitcoin mining, another cryptocurrency activity. Due to low electricity prices, this Central Asian country has become a hot spot for coin minting. Suppress in China. Power consumption has increased by 7% this year, mainly due to cryptocurrency miners.
In terms of crypto investment, the authorities have recently impose Limit the amount of cryptocurrency purchased by non-professional investors on domestic exchanges registered in the Nur-Sultan Financial Center. Regulators explained these restrictions, citing the need to protect individuals from the risks associated with digital assets.
Do you want Kazakhstan to strengthen financial monitoring in the cryptocurrency field? Tell us in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. The company or the author shall not bear direct or indirect responsibility for any damage or loss caused or claimed to be caused by using or relying on any content, goods or services mentioned in this article.