Kazakhstan has taken steps to decrease the criminal risk from financial crime in the country. The regulatory body of Kazakhstan now regulates local digital asset companies.

Local reports claim that the National Parliament of Kazakhstan passed a bill that would require crypto-related companies to undergo additional rounds of financial auditing. The firms will have to provide detailed information about their crypto dealings to the country’s regulatory bodies to prove that they have no ties with any money-laundering schemes.

A Kazakh parliament suggested that Financial Monitoring Agency receive more responsibility and authority to combat cybercrimes. Olga Perepechin (a member of Parliament) stated that this move was intended to reduce terrorist financing and money laundering.

According to current law, digital assets are not subject to financial surveillance. This makes it attractive for criminals and very lucrative for them.

It encourages the proliferation of criminal acts in the areas of money laundering, terrorism financing and the shadow economy. The use of virtual assets to settle disputes encourages the bad guys.

However, the onus is on the country’s president Kassym-Jomart Tokayev to give the final verdict on whether the proposed bill will be approved or not.

Kazakhstan, a leader in crypto mining, is highly regarded in the digital asset market. The country is second in the world behind the US, accounting for 18.1%. The United States became the undisputed global hash-rate leader with over 35% of the global share, following China’s crackdown on mining.

A few months back, Kazakhstan’s ruling body granted permission to banks to offer digital asset services. Specific authorization was granted by the government to banks for Bitcoin transactions and certain altcoins.

Sergey Putra from Data Center Industry explained to the crowd that this initiative would help the country adopt more cryptocurrency. The digital asset market is a crucial part of Kazakhstan’s economy, and he referred to this as something that Kazakhstan must not overlook.

This is billions in annual turnover worldwide. Even if Kazakhstan only takes a fraction of that, it is significant money that will be invested in Kazakhstan. The money will stay in Kazakhstan as taxes and in the form a job or salary. It is an important industry that Kazakhstan has yet to capture.

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