Upon the approval from the upper house of the country’s national parliament for a new crypto legislation, local establishments in the sector may soon have to abide by new AML regulations. 

Specifically, the new law will reportedly widen the scope of the existing financial monitoring network of the nation to include crypto service providers.

The new regulation will reportedly further set up a legal institution of public officials. Upon the introduction of a company’s crypto trading service or virtual assets issuance, it is mandatory for notifying the Ministry of Digital Development, Innovation and Aerospace Industry in Kazakhstan. 

The institution will reportedly be responsible for carrying out a risk assessment, confirming that Know Your Customer and AML regulations are being adhered to. 

Per Vlast, Senator Olga Perepechina reportedly revealed that the existing scope of the financial monitoring network of Kazakhstan does not include legal establishments that deal with virtual assets, organize trade or offer services for the conversion of cryptocurrencies into cash, tangible goods and other property.

The senator reportedly shared a warning that the current oversight insufficiency will give way to the quick spread of money laundering and terrorist financing crimes, together with the development of black markets. 

Cybercriminals, including terrorists, will be more motivated to wrongfully take advantage of digital assets and electronic methods in their settlements, she warned.

Nonetheless, the proposal has reportedly not received the official greenlight from the nation’s president, Kassym-Jomart Tokayev.