Kazakhstan legislators have passed a law that scrutinizes crypto service providers’ compliance with the country’s anti-money laundering policy.
The new law requires any company launching a digital asset to inform the country’s ministry of digital development, innovation, and aerospace.
The institution has been tasked with risk assessment and KYC documentation responsibility. Kazakhstan’s Senator Olga Perepechina warns that terrorists and cybercriminals were using digital assets in perpetrating a crime.
The proposed law now awaits Kazakhstan’s President Kassym-Jomart Tokayev’s assent. President Tokayev called for the regulation of Bitcoin mining activity last month to curb power usage.
The Asian country has seen a surge in bitcoin mining due to its low electricity costs amid the cryptocurrency crackdown in China.
Kazakhstan’s mining hash rate currently stands second to that of the US, and the overall crypto mining sector could reportedly add $1.5 billion to the nation’s economy in the next five years.