The Senate of the Parliament of Kazakhstan adopted a bill on countering the legalization of proceeds from crime and the financing of terrorism, including on cryptocurrency trading platforms.
During the plenary session of the chamber, MP Olga Perepechina said that the bill is aimed at reducing the risks of money laundering and increasing the efficiency of the national anti-money laundering system, including in the cryptocurrency market. Perepechina explained that the law is aimed at regulating the work of cryptocurrency exchange operators.
Now persons acting as issuers of cryptocurrencies, offering services for trading and other operations with cryptocurrencies, as well as exchanging cryptocurrencies for fiat money, valuables and other property, do not fall into the zone of financial supervision. This leads to the spread of crimes in the field of money laundering, terrorist financing and the shadow economy, and also provokes cybercriminals to use cryptocurrencies in mutual settlements.
The law, approved by the Senate, will make financial monitoring mandatory for cryptocurrency exchanges in Kazakhstan. In the near future, cryptocurrency exchanges will check for compliance with the rules for combating money laundering and terrorist financing (AML). From the moment the law enters into force, cryptocurrency companies will be required to notify local authorities about the launch of cryptocurrency trading services or the completion of such activities.
Perepechina said that the bill proposes to expand the powers of the Financial Monitoring Agency in terms of providing access to the national register of business identification numbers to the authorized financial monitoring body without the right of moderation. This, according to the deputy, will help ensure transparency in revealing information about the legal owner of the company.
Kazakhstan is currently experiencing a cryptocurrency boom associated with the relocation of mining companies from China. In October, the President of Kazakhstan instructed to develop a law to combat illegal mining. This month, Kazakhstan introduced limits on the purchase of cryptocurrencies “to protect private investors from increased risks.”
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