Kazakhstan Introduces Anti-Money Laundering Regulations for Cryptocurrency Firms
New Law Targets Companies Working with Digital Assets
Companies operating in the cryptocurrency space in Kazakhstan may soon be required to adhere to anti-money laundering (AML) regulations. A new law, passed by the national parliament, has yet to be signed into effect by the country’s president but, if enacted, would introduce stricter monitoring for firms involved in digital assets.
Background on the Legislation
The lack of oversight on cryptocurrency activities has been linked to an increase in money laundering and terrorism financing using digital assets. According to Olga Perepechina, a parliament member, the new regulations aim to curb these illegal activities that have been a concern globally.
Rise of Cryptocurrency Mining in Kazakhstan
Kazakhstan has emerged as a popular destination for cryptocurrency mining following China’s recent crackdown on the industry. Many Chinese miners relocated there, contributing to the growth of digital asset operations in the country.
Impact and Intentions Behind the New Regulations
The introduction of AML regulations is aimed at ensuring that companies operating with digital assets in Kazakhstan operate within legal boundaries. The new law would impose stricter monitoring on firms issuing digital assets or providing fiat on-ramps and crypto trading services. This move aligns with global efforts to combat money laundering and terrorism financing, highlighting the increasing recognition of digital assets as a potential risk factor for these illegal activities.
Key Points
- A new law targeting cryptocurrency companies in Kazakhstan has been passed by parliament.
- The law aims to introduce stricter monitoring on firms involved in digital assets.
- This move is linked to an increase in money laundering and terrorism financing using digital assets.
- Kazakhstan’s emergence as a popular destination for cryptocurrency mining post-China’s crackdown contributed to the need for these regulations.