The head of the KABT spoke about the prospects and problems of the development of the crypto industry in Kazakhstan

Chief Executive of the Kazakhstan Association of Blockchain Technologies and Data Centers (KABT) Dauren Karashev spoke in the legal publication "Zanger" about the prospects and problems of the development of the crypto industry in Kazakhstan.

The expert noted the growing influence of digital crypto assets in the global economy due to such features as decentralization, a minimum number of intermediary links in transactions and anonymity. According to his assessment, most countries with advanced economies (USA, Japan, European Union, Singapore, Ukraine, Georgia, etc.) are actively engaged in adapting cryptocurrencies and generally decentralized finance into their financial system, since the coming digital age, apparently, will be closely interconnected with the blockchain.

"It is important to ensure that the legislative acts of the Union (European Union) in the field of financial services meet the requirements of the digital age and contribute to the formation of a future economy working for the benefit of people, including by creating conditions for the use of innovative technologies," Karashev quoted the preamble of the Act of the European Union "On the Cryptocurrency Market", stressing that in In Kazakhstan, the activity of platforms for working with crypto assets is allowed only on the territory of the Astana International Financial Center and is regulated by its acts.

Such an order in the legislation of Kazakhstan has existed since 2020 and is due to the presence of serious risks in the use of unsecured digital assets, which, without proper regulation, can harm the interests of the state and citizens. Since cryptocurrencies are very volatile, and decentralization and anonymity make it possible to widely use cryptocurrencies in financial crimes such as terrorist financing, drug distribution, cold steel, money laundering, income concealment, tax evasion and fraud.

Chief Executive of the KABT positively assessed the current legislative framework in terms of legislative norms providing measures to identify and suppress illegal activities in this industry. However, he gave an unsatisfactory assessment of the supervision of the implementation of these norms. Such a circumstance, the expert stressed, can lead to a high probability of money laundering using cryptocurrencies, concealment of income, financing of terrorism, and tax evasion.

The Chief Executive of the Association noted that government agencies need to take a more responsible approach to regulating this industry, keep their finger on the pulse of the market, for this they should closely cooperate and adhere to the recommendations of professional organizations such as KABT, since "shadow" crypto assets are a threat to the financial security of the country.