Kazakhstan Votes a Law That Allows The Government To Monitor Crypto Transactions

2021-11-05 18:11:25
Kazakhstan Wants To Have Control Over Crypto

The Parliament of Kazakhstan passed a law that will allow the government to legally monitor all-digital, i.e. crypto transactions in the country. All that is left now is for the President of Kazakhstan to sign the bill, something that seems like a mere formality at the moment.

The main purpose of creating this crypto-surveillance law is to track and prevent potential terrorist funding via digital assets. Moreover, it will also serve to battle crypto money-laundering schemes. With a specific focus on illegal crypto mining and digital exchange companies.

Consequently, all companies involved with crypto will be obliged to inform the Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan.

That includes businesses that provide any profitable crypto service, such as crypto trading, fiat on-ramps, staking, etc. And that is regardless of whether they are starting out, or they are shutting down.

Olga Perepechina, a member of the parliament of Kazakhstan supports this new legislation. In fact, she believes that it is due to the lack of proper control over digital assets that there is an increase in both crypto money-laundering schemes, and consequently funding terrorism.

Chinese Miners Causing Problems

Yet, it seems like the overflow of Chinese crypto-miners is probably one of the biggest reasons for this law. Especially since the recent crypto-crackdown in China, which saw an all-out war declared on cryptocurrencies by the Chinese government.

Naturally, a lot of Chinese crypto-miners went to neighbouring Kazakhstan as an alternative. And that sparked a new crypto-era in the country.

Consequently, turning Kazakhstan into one of the hottest crypto-mining destinations on the Asian continent. And it is that interest in crypto that attracted the attention of the government of Kazakhstan, and ‘forced’ them to come up with a law that allows them to monitor crypto transactions.

Only time will tell how will the public respond to this law. And whether it is a sign that Kazakhstan is slowly, but surely imposing the government will over crypto assets.

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