December 11, 2023

Crypto companies in Kazakhstan may be forced to report to regulators

The government of Kazakhstan plans to subordinate local companies working with digital assets tocertain rules.According to the bill, such organizations will have to provide detailed information about their cryptocurrency transactions to the country's supervisory authorities in order to prove that they are not involved in money laundering schemes.

As Sputnik reports, NationalThe parliament of Kazakhstan has developed a bill according to which businesses related to cryptocurrency are subject to additional financial audit. Politicians consider it necessary to give the Financial Monitoring Agency greater powers and responsibilities.

MP Olga Perepechina noted thatthis step aims to reduce the risks of money laundering and terrorist financing. Currently, individuals and companies working with digital assets are outside financial monitoring, which makes cryptocurrency transactions attractive to criminals:

This leads to ... the growth of the shadow economy and encourages cybercriminals to use virtual assets in their calculations.

Now the last word on the document belongs to the country's President Kassym-Jomart Tokayev.

Kazakhstan is known in the digital spaceassets as one of the leaders in cryptocurrency mining. The country accounts for 18.1% of the global hash rate, which puts it in second place after the United States with 35%.