The Upper house in Kazakhstan passed legislation to impose high restrictions based regulations to keep eye on the activities of crypto services running in the nation.
Kazakhstan is a developing country and the officials of the Kazakhstan government know very well that they need to step into the revolution with high-level technology, that is why they allowed crypto-based services in the nation. But these crypto-related operations are not easy to handle in case of loose regulations & rules. That is why Kazakhstan officials are seeking better regulation.
According to a report by the local media news outlet of Kazakhstan, Vlast, Kazakhstan is moving toward new legislation to introduce a perfect Anti-money laundering regulation (AML).
The new initiative of the upcoming legislation will increase the ability of the financial regulators of the nation to cover the whole crypto industry’s operations in Kazakhstan.
The new rule will restrict all the crypto-based services providers or new crypto or token launch projects to reporting to the Ministry of Digital Development, Innovation and Aerospace Industry in Kazakhstan. So this legislation will provide restriction based new rules on the new crypto services providers also.
Under the proposed legislation, officials will establish an institution dedicated to the crypto-related services provider. The institution will ensure the operations of the crypto service provider, where the service providers are following all rules and regulations to comply with rules like Anti-money laundering or not.
The report also reported that Olga Perepechina- one of the Senators of Kazakhstan- explained the need for this new legislation. According to Senator, current existing rules of the nation are not able to cover the “legal entities that handle digital assets, organize trade, or offer services for the conversion of cryptocurrencies into cash, tangible goods, and other property”. But now new rules will not only increase the area to monitor such activities but also will make the ecosystem of the crypto market in Kazakhstan better for the citizens.