The concerned authorities in the country of Kazakhstan are said to be planning on placing local firms to work alongside digital assets, but within their regulatory reach.
The proposed bill suggests that firms and other related entities are required to disclose information regarding their operations involving cryptocurrencies and other digital assets.
A closer look at businesses connected with cryptocurrency
The proposed crypto rules – according to reports – were passed by the National Parliament of Kazakhstan for businesses with crypto operations to be required with an additional financial audit. Also, the lawmakers pitched for additional powers and responsibilities, be given to the country’s Financial Monitoring Agency.
A Parliament member – Olga Perepechin – stated that such a move is focused on reducing the likelihood of these businesses and entities committing money laundering and even financing terroristic acts. As of late, people and firms in possession and dealing with digital assets within the Central Asian nation are still far from the government’s financial monitoring grasp as this serves somewhat of a pheromone to these do no-gooders.
Perepechin said that the above-mentioned current situation in Kazakhstan is stimulating criminals to utilize digital assets and the likes in settlements.
That said, albeit the bill being proposed by the Kazakh Parliament, it’s head of state – President Kassym-Jomart Tokayev – still has the last say about it whether it officially becomes the law of the land or otherwise.
Next to the U.S.
For the uninitiated, Kazakhstan is one of the notable countries within the realm of cryptocurrency as one of the top nations in the field of mining digital currencies. The country accounts for 18.1 percent of the world’s hash rate, as this lands them the second spot next to the United States. This was after the communist folks in China imposed a massive clampdown on bitcoin and other crypto mining activities in that country. The U.S. is currently in charge of over 35 percent of the global share.
Banks allowed to process crypto transactions
Before this, it was reported that Kazakhstan has allowed its banking institutions to give crypto and digital asset services to their clients. Specifically, the government greenlit banks to open accounts that would cater to altcoin and bitcoin transactions.
However, it was pointed out that such an initiative would only last for a year and it needs to be decided if the project should be extended after its current run.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.