Crypto firms in Kazakhstan may soon be subject to Anti-Money Laundering (AML) rules, as per proposed laws voted by the country’s upper chamber of parliament on Monday, as highlighted by local news site Vlast.

The new law broadens the scope of the nation’s financial surveillance system to include crypto companies.

In addition, the proposed law would create a legal entity for public officials. A company must inform Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry when it establishes a digital currency trading service or issues digital assets. The institution will be responsible for completing a risk assessment and ensuring compliance with Know Your Customer and Anti-Money Laundering rules.

Senator Olga Perepechina told Vlast that Kazakhstan’s financial surveillance system does not now include legal firms that manage digital assets, coordinate trade, or provide services for converting digital currencies into cash, physical products, or other property.

Kazakhstan

The senator cautioned that a lack of control allows money laundering and terrorist funding to increase quickly and expand the black market. She said that criminal groups, especially terrorists, are encouraged to collect their debts using digital assets and electronic techniques.

The idea has yet to be authorized by Kassym-Jomart Tokayev, the country’s president. Tokayev pushed for the immediate control of another crypto activity, Bitcoin (BTC) mining, citing the nation’s power shortage earlier this month. Despite an enhanced Chinese crackdown, the Central Asian country, which has some of the world’s cheapest power, has become a Bitcoin mining hub.

Kazakhstan expects digital currency mining to contribute at least $1.5 billion to the economy within five years, according to Cointelegraph. After the United States, the nation’s current mining hash rate is second in the world.

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