Kazakhstan to Implement Financial Monitoring on Local Cryptocurrency Businesses: Report

According to reports, the government of Kazakhstan plans to regulate local companies that deal with digital assets. A proposed bill would require these entities to provide detailed information about crypto operations to the financial watchdogs of Kazakhstan to prove that they are not connected to money-laundering schemes.

Kazakhstan may tighten its crypto rules

According to local media Sputnik the National Parliament of Kazakhstan approved a bill that would make crypto-related businesses subject of an additional financial audit. They also suggested that the Financial Monitoring Agency be given more power and responsibility.

Olga Perepechin, a member the Parliament, noted that the move is intended to reduce money laundering and terrorist financing. Individuals and companies that deal with digital assets in Asia are currently exempt from financial surveillance, making crypto transactions more attractive to criminals.

This leads to the proliferation of criminal acts in the fields of money laundering and terrorist financing, as well as the shadow economy. It encourages criminal actors to use virtual assets as settlements.

However, it will be up to the President of the Republic, Kassym-Jomart Tkayev, to decide if this legislation is made official.

The leader in cryptocurrency mining, Kazakhstan is well-known within the digital asset community. It is responsible for 18.1% of global hashrate, making it second only to the US. The US became the undisputed leader in global bitcoin mining shortly after China cracked down.

Kazakhstani Banks can process crypto purchases

CryptoPotato reported that the Kazakhstani ruling body allowed banks to offer digital asset services to customers. The government granted banks permission to open accounts for bitcoin transactions and other altcoins.

Sergey Putra, an executive at the Data Center Industry, stated that the initiative was a step toward wider adoption of cryptocurrency in the country. He also spoke about the importance of digital asset market – something Kazakhstan should not overlook:

It is billions of dollars per day in worldwide turnover. Even if Kazakhstan only takes a fraction of that percent, this money will be poured into Kazakhstan as investments. It will be retained in the form tax, as well as in the form jobs and salaries. This is a large industry that Kazakhstan has yet to capture.

The project will be completed in 12 months. After that, the government will decide if it should be extended.

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Marla Brooks

Marla Brooks – Financial Analysis My name is Marla Brooks, and I am the mainstream behind the”observednews.com”  for the powerful and most delicate insights into the latest activities in the financial analysis category. I started my journey as an independent financial consultant. I had approximately nine years of experience in this field. I am free soul so; my passion for exploring the world has taken me to the nations across the globe and given me the chance to report for a portion of the best news associations. Currently, I am a full-time editor as experienced in finance and started to use my abilities.

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