Daily Archives: November 8, 2021

The Crypto Economy Soars Past $3 Trillion — Momentum of Value Grew Much Faster Than Apple’s Market Valuation

The Crypto Economy Soars Past $3 Trillion — Momentum of Value Grew Much Faster Than Apple's Market Valuation

On November 8, 2021, the cryptocurrency economy’s market capitalization reached the $3 trillion mark after gathering significant value over the course of 12 years. The overall value of the 10,464 crypto-assets in existence is now larger than Microsoft’s market valuation at $2.52 trillion and Apple’s $2.47 trillion market cap.

Cryptocurrency Economy Is Now More Valuable Than Company’s Like Microsoft, Apple, Google, Saudi Aramco

Statistics indicate that on Monday, November 8, the net worth of the entire crypto-economy is valued at over $3 trillion, after jumping roughly 3.7% in value during the last day. The 10,464 coins in existence, worth over $3 trillion, have produced $206 billion in global trade volume during the last 24 hours. Years ago, people laughed and described crypto as merely valueless ‘Beanie Baby’ collectibles. Today, however, most are not laughing and they are either angry or simply taken back by the momentum of value.

The crypto economy’s climb to $3 trillion has been fast, as it’s been less than 13 years to surpass the $3 trillion in value. The top assets in the world cannot say the same, and many of them have taken decades to get to the value they are at today. It took the most valuable market capitalization, held by Microsoft today, a total of 33 years from its initial public offering (IPO) to its first trillion-dollar valuation in 2019. The surge in tech stocks and the Covid-19 pandemic pushed Microsoft past the next trillion, leading up to today’s $2.52 trillion valuation.

The crypto economy’s valuation grew 169.23% faster than Microsoft’s current market cap. Apple too took a significant amount of time to get to its current valuation since the firm’s inception in 1976. Apple beat Microsoft to the trillion mark a year beforehand in August 2018, and it took the firm 41 years to get there. Two years after 2018, Apple hit the second trillion and in August 2021, the firm reached the $2.5 trillion mark. Shares of Apple have since dropped a hair, down to $150.68 per share and Apple holds a $2.48 trillion valuation.

Crypto Economy Grew 215% Faster Than Apple’s Valuation Growth — Some Believe the Value of Cryptocurrencies Will Surpass the Growth of the Internet Itself

The crypto economy grew 215.38% faster than the mega tech firm Apple by hitting $3 trillion in less than 13 years. The crypto economy is also bigger than Google’s 2 trillion dollar worth and big oil’s Saudi Aramco and its $1.99 trillion valuation. Google is 23 years old and hit the $2 trillion mark faster than both Apple and Microsoft.

However, the crypto economy grew 76.92% faster than Google’s overall market capitalization, and the 10,464 crypto-assets’ overall value is over 1 trillion dollars larger today. In 2016, Crown Prince Mohammed bin Salman said Saudi Aramco would be a trillion-dollar firm after a partial privatization scheme was settled. His prediction eventually came true and Saudi Aramco is the fourth largest asset by market cap today.

Meanwhile, the largest oil company Saudi Aramco is 88 years old and in 2019, it hit the $2 trillion market capitalization zone. It took 85 years for the Saudi oil company to make it to this milestone, which is roughly 553.84% slower than the crypto economy’s 13-year run-up in value.

In terms of growth, only the internet itself has seen exponential value grow as wildly as the cryptocurrency and blockchain economy. In fact, many crypto proponents believe it will or it already has outpaced the world wide web in terms of value. “The innovations in this industry may even surpass the Internet itself,” The cofounder and former CEO of Bitmain, Jihan Wu, said earlier this year.

What do you think about the crypto economy rising to $3 trillion in less than 13 years? Let us know what you think about this subject in the comments section below.

The Future of Nightlife Is Here: Bitcoin of America Adds Bitcoin ATM to Joy District Chicago

PRESS RELEASE. Popular Bitcoin ATM operator, Bitcoin of America, has announced their newest location in one of Chicago’s hottest nightclubs. Joy District is known for its nightclub/restaurant hybrid. It is located in the heart of River North and has been awarded as one of Chicago’s best and hottest rooftop bars. You can now socialize at Joy District with friends and even interact with a Bitcoin ATM all at the same time.

Bitcoin of America is a popular virtual currency exchange, registered as a money services business with the United States Department of Treasury (FinCEN)(RegNum). Bitcoin of America is known for ensuring a fast and hassle-free transaction, while providing top of the line customer support. They are headquartered in Chicago and have locations in most major cities across 31 US states.

To date, Bitcoin of America has 30 plus Bitcoin ATM locations across the city of Chicago. You can find a majority of their locations in convenience stores, liquor stores, and 24-hour gas stations. This new location is changing the way that most people think about interacting with cryptocurrency. It is rare to find a Bitcoin ATM in a social setting like a nightclub, but Bitcoin of America is finally making this all possible.

Bitcoin of America is always looking to provide convenience to their customers. Their newest Bitcoin ATM location at Joy District also operates as a traditional ATM. Customers have the option to either withdraw cash or choose the cryptocurrency of their choice. Bitcoin of America is looking to change the way that they interact with their customers by making their Bitcoin ATMs more accessible. They are hoping to help make cryptocurrency into more of a daily normality.

Bitcoin of America has made a large footprint when it comes to bringing cryptocurrency to the City of Chicago. They announced in early October that they are now the official entitlement sponsor of The Chicago Blackhawks Post Game show. In August of this year Bitcoin of America also announced that they would be working with WGN Radio Chicago. WGN even added a daily Bitcoin price update sponsored by Bitcoin of America. They are hoping to bring awareness to cryptocurrency by promoting it across all platforms. Bitcoin of America has also been vocal about providing more free opportunities for the public to learn the basics of how to buy bitcoin and bringing more women into the industry.


This is a press release. Readers should do their own due diligence before taking any actions related to the promoted company or any of its affiliates or services. Bitcoin.com is not responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in the press release.

Athletic Shoe Giant Nike Looks Poised to Tackle Metaverse and NFTs: Report

Nike, the American multinational footwear and sports apparel giant, is getting ready to step into the metaverse and the world of non-fungible token (NFT) technology. Reports show Nike has a few employees “thinking about the metaverse” and a 2019 patent for “cryptokicks” indicates Nike has been preparing to use NFTs for quite some time.

Nike’s Well-Known Trademarks and ‘Downloadable Virtual Goods’

Several reports indicate that Nike (NYSE:NKE) is getting ready to step into the non-fungible technology realm and the footwear corporation may have been preparing to do so for a while now. The senior correspondent at Business Insider’s (BI) retail desk, Matthew Kish, explains in a recent analysis that “Nike is going all in on its metaverse play.” The report discusses Nike’s recent U.S. Patent and Trademark Office filing published this week.

A number of well-known trademarks Nike owns were also included such as the “Just Do It” tagline, its SNKRS logo, the Air Jordan “Jumpman,” and the Nike swoosh. All of which can be leveraged as “downloadable virtual goods, namely, computer programs featuring footwear, clothing, headwear, eyewear, bags, sports bags, backpacks, sports equipment, art, toys, and accessories for use online and in online virtual worlds.”

Nike Employees Prep for the ‘Metaverse’

Kish details that on the careers web portal Linkedin, one Nike employee explains in his job description that it includes “thinking about the metaverse.” According to the senior BI correspondent, “several Nike employees also now have ‘metaverse’ in their job descriptions.” Moreover, Nike has two job listings published last month indicating the firm is looking for virtual footwear and virtual material designers.

A report stemming from CNBC details that the firm is also waiting for confirmation on a patent called “Cryptokicks.” Despite all the speculation about what Nike is doing, the multinational footwear and sports apparel giant has not yet specified any official NFT plans. The world’s largest supplier of athletic shoes was ranked 89th in the Fortune 500 list in 2018 and last year amid the pandemic, Nike raked in $37.40 billion in revenue.

What do you think about Nike preparing for the metaverse and possibly NFTs? Let us know what you think about this subject in the comments section below.

A New Semiconductor Manufacturing Competitor Has Entered the ASIC Bitcoin Mining Rig Industry

A New Semiconductor Manufacturing Competitor Has Entered the ASIC Bitcoin Mining Rig Industry

While companies like Microbt, Bitmain, Innosilicon, Strongu, Ebang, and Canaan have ruled the roost in terms of manufacturing application-specific integrated circuit (ASIC) bitcoin miners, a new challenger has entered the competition. A relatively unknown integrated technology firm called AGM Group Holdings has seen a lot of ASIC sales and partnerships in recent times.

A Relatively Unknown Semiconductor Firm Has Been Revealing Large Bitcoin Mining Rig Purchase Orders

2021 has seen record sales, in terms of ASIC mining rigs sold by bitcoin mining rig manufacturers like Microbt, Bitmain, and Canaan. Mining operations located all around the world have purchased thousands of bitcoin mining devices from these firms during the last year.

The demand for ASICs has been so high, many orders placed this year are due to be shipped at some point in 2022. Now a new challenger has entered the ASIC bitcoin mining rig manufacturing competition and recent press announcements detail AGM Group Holdings (Nasdaq:AGMH) is selling a lot of crypto mining products.

On November 3, AGM announced it had “won a purchase order” from Code Chain New Continent Limited (Code Chain) and will deliver 10,000 units of its 100 terahash (TH/s) mining rigs. While AGM won the purchase order worth $65 million in ASIC machines, the mining products are expected to be shipped in the second half of 2022. According to AGM’s website, the company sells three types of bitcoin miners with various performance ratings.

“[The] KOI Miner C16 Series [supports] mining of bitcoin, bitcoin cash and other cryptocurrencies. [The] KOI Miner C16 is built on a new architecture using FinFET N+1 process technology,” AGM’s website description details. “The computing power as a whole machine passes 100TH/s, as high as 113TH/s, with [the] energy consumption rate of the unit computing force reduced to as low as 30J/T.”

AGM’s Shares on Nasdaq Spike in Value

At 113 TH/s, the KOI Miner C16 S model is estimated to pull in $39.92 per day with an electrical consumption of $0.12 per kilowatt-hour (kWh). It would compete with the top three mining devices the Microbt Whatsminer M30S++, the ​​Ipollo B2, and Bitmain’s Antminer S19 Pro. There are no reviews online yet about AGM’s KOI Miner C16 series miners and the machines are not yet listed on real-time ASIC hardware profitability rankings.

A New Semiconductor Manufacturing Competitor Has Entered the ASIC Bitcoin Mining Rig Industry

In addition to the November 3 purchase announcement, a slew of other media statements have been published by AGM during the last two months. AGM announced its “first significant order” for 30,000 mining rigs on October 13, when it sold the ASIC miners to Nowlit Solutions Corp, a digital currency equipment supply chain service. On October 21, AGM sold 25,000 ASIC miners to Minerva Semiconductor Corp. Furthermore, AGM revealed a partnership with Meten Holding Group, a Nasdaq-listed English language coaching firm that is based in China.

The partnership announcement caused Meten Holding Group’s stock (Nasdaq:METX) to soar in value, increasing over 44% on October 28. On that day, METX was swapping for $0.5990 per share and today, METX is changing hands for $0.62 per share. AGM’s shares on Nasdaq, AGMH, were swapping for $11.40 per share on November 5, and each share has gained 3.771%, now trading for $11.83 per unit.

What do you think about the relatively unknown mining rig manufacturer stepping into the bitcoin mining industry? Let us know what you think about this subject in the comments section below.

Author Insists Current Gold Price Cheaper Now Than in 1980

While gold is generally perceived to be the best hedge against inflation, a report written by author Kelsey Williams has now questioned this longstanding assertion. In the report, Williams argues that the current gold price of around $1,810 per ounce is much lower than the commodity’s average price in 1980.

Gold Price Rise Lags Behind Inflation

Williams’ averments suggest the yellow metal’s rate of increase in value over the past 41 years has lagged behind that of inflation. In a report that was published by FX Empire, the author uses nominal and inflation-adjusted gold prices to illustrate this point.

For instance, according to a table shared in the report, the nominal price of gold has been on an upward trajectory from $664 per ounce recorded in February of 1980 to $1,825 by August 2011. However, when adjusted for inflation, it is the February 1980 price that rises the fastest, to $2,309, compared to the August 2011 price which is pegged at $2,220.

A similar trend is also observed in August 2020 when gold recorded its all-time high of $2,070. For instance, the same table shows that at one point when the price in August was $1,970, the commodity’s inflation-adjusted price is in fact $2,078.

Why Gold Is Declining in Real Terms

This illustration by Williams could mean investors that have traditionally taken positions in gold are in fact not getting the best protection. The author himself offers his thoughts on why the price of gold has been declining in real terms. He said:

Since gold’s higher price over time is a reflection of the ongoing loss in purchasing power of the US dollar, it cannot be expected to exceed previous price peaks on an inflation-adjusted basis. By the same token, it is not unreasonable to expect it to match the peaks. The one factor which is likely limiting gold’s price from matching previous price peaks is that the overall effects of Federal Reserve inflation are continuing to have less and less impact.

Although the author does not suggest a better alternative store of value to gold, the report does show that gold has not matched the rate of the dollar’s deterioration.

Do you agree with what Williams has said about the price of gold? Tell us what you think in the comments section below.

Binance CEO: Avoiding Cryptocurrency Scams, Squid Game Token and Other Defi Risks

The following article was written by CZ, Binance CEO & Co-Founder.

DYOR, or do your own research, is a concept I think every investor should know about. It’s as close to a golden rule as anything in the world of crypto, but it applies more even broadly to anything you’re planning to invest in, from Bitcoin and bonds to stablecoins and stocks.

Earlier this week, the anonymous developers behind a DeFi project named Squid Game token abruptly performed a “rug pull”, a common scam where the team behind a crypto project takes off with users’ funds. Because these scams are becoming more commonplace as the DeFi space grows, I’d like to take this opportunity to remind users that DeFi is not without its risks, and we hate to see anyone lose their funds due to scams and other cybercrimes.

Squid Game Tokens: What Happened and Why?

Last week, a cryptocurrency called SQUID began trading on PancakeSwap, a decentralized exchange. It quickly gained traction among users, many of whom thought there was an association between the project and the recent Netflix hit series, “Squid Game”.

The project was not without its red flags, which attentive users were quick to spot. Users who bought the token reported that they weren’t able to sell it, and any official association to the Netflix series was quickly disproven.

Despite the warning signs, speculators continued to buy the token, pushing prices up exponentially before the project founders drained the liquidity pool in minutes, taking off with investors’ funds in the process.

Why Can’t These Projects Be Banned or Delisted?

Some may ask, why can’t Binance do something about DeFi projects like SQUID? I think it’s important here to explain that blockchains like Binance Smart Chain (BSC) and Ethereum are open-source. We don’t have any control or influence over projects that are built on the network. Because BSC is entirely community-driven, governance-related decisions would need to be coordinated by the community. The same is true for any other open-source blockchain, like Ethereum for example.

However, our security team proactively launched an investigation as a way to show our support for the wider crypto community. I can confirm we are taking the following actions:

  • Working to identify and blacklist address affiliated with the developers
  • Deploying blockchain analytics to identify the bad actors
  • Providing our findings to law enforcement in the appropriate jurisdiction(s)

I should make it very clear that in cases like this, there is little we can do to recover funds or intervene. Again, Binance is not connected to nor has oversight or control over projects built on BSC.

On Doing Diligence to Avoid DeFi Exit Scams

The truth is, SQUID won’t be the first or last DeFi scam. Over the past year, more first time investors have entered the markets than at any point that I can remember. And it’s not just DeFi or crypto. On Twitter, stock tickers regularly become trending topics.

We’re entering a period of peak speculation—people are looking for the next get rich quick scheme or 100X opportunity. The truth is, those 100X don’t come along often. And when they do, they usually come with a ton of risk, sometimes so much so that the lines get blurred between investing and gambling. At Binance, we dedicate significant time and resources to creating free educational materials to help our users better understand and navigate the world of crypto. That’s why you should always DYOR. For more reading on DeFi risks, our Academy team has put together a pretty thorough guide on how to spot common DeFi scams.

Why I Recommend Beginners Start With Centralized Finance, or CeFi

If you’re new to crypto, I recommend you start by choosing a centralized exchange like Binance. CeFi platforms still come with risks, but they often have a lot more user protection mechanisms in place. Due to the centralized nature of these platforms, there are more opportunities for remediation, if something goes wrong. Larger, reputable platforms like Binance are designed to be accessible and easy to use. They act as a great gateway to the world of crypto.

For more advanced users, DeFi features some really compelling benefits. I’ve said before that I personally think decentralization is the future for this industry. With DeFi, anyone can access crypto products and services without relying on an intermediary.

Why wait for a centralized exchange to list a token you’ve had your eye on, when you can head over to a decentralized exchange to buy it now, without any exchange fees? DeFi removes the middleman, allowing you to make direct transactions with counterparties. However, DeFi can be complicated. You have to manage your own keys—lose them and your funds are gone forever. There’s potentially no vetting process or guardrails to keep you from interacting with suspicious projects. The smart contracts that facilitate your transactions may have vulnerabilities that you don’t know about.

To me, the benefits of DeFi far outweigh the drawbacks, but you need to arm yourself with crypto knowledge first. If you have information related to an ongoing scam, feel free to drop our team a line at [email protected]

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Russia to Change 13 Laws and Codes for Digital Ruble

Russia to Change 13 Laws and Codes for Digital Ruble

Authorities in Russia are gearing up to amend various pieces of legislation to facilitate the issuing and function of the digital ruble. Officials in Moscow believe this version of the national fiat needs to be regulated separately from other digital forms of money such as cryptocurrencies.

Russia Prepares to Trial Digital Ruble, Officials Say CBDC Needs Its Own Regulations

Russian lawmakers are planning to begin work on legal changes necessary to implement the digital ruble concept in January 2022. These efforts will commence alongside the launch of an experiment for the central bank digital currency (CBDC), the chairman of the parliamentary Financial Market Committee, Anatoly Aksakov, told the Russian daily Izvestia.

Aksakov pointed out that at least eight federal laws and five codes — the Civil, Tax, Budgetary, Criminal, and Administrative Code — need to be amended for the digital ruble’s implementation. The new provisions will concern a number of areas such as the powers of Bank of Russia to organize the circulation of the new currency, its legalization as a means of payment, the legal protection for its holders, and so on.

Russia adopted a special law regulating “digital financial assists” which went into force at the beginning of this year. Aksakov is convinced, however, that the members of the State Duma, the lower house of parliament, have to distinguish between the concepts of digital currencies, stablecoins, and the digital ruble. He also thinks judicial protection for associated rights must be guaranteed and crypto mining regulated. The deputy stated:

Conventional cryptocurrencies, stablecoins and the state digital currency must have their own definitions which must be reflected in the legislation.

Bank of Russia (CBR), the country’s central bank, intends to begin testing the platform for the digital ruble in January. According to the CBDC concept published this spring, the prototype has to be ready by the end of the year.

The media report reveals that the trial will be carried out in several stages. During the first stage, the CBR will issue the digital currency. Later, the number of participants in the pilot project will be increased from the current 12 banks. Representatives of the monetary authority further commented:

Based on the results of this piloting, a roadmap for the introduction of the digital ruble will be developed as well as the necessary amendments to the legislation.

According to the publication, the Russian Ministry of Economic Development has also noted that the introduction of the digital ruble would require separate legislative regulation. “At the very least, it will be necessary to say that it will be possible to pay with a digital ruble unlike conventional digital currencies,” according to Alexey Minaev, deputy director of the Digital Economy Development Department.

Speaking to Izvestia, Minaev described the introduction of national digital currencies as a worldwide trend. The government official also emphasized that this form of money has practically nothing to do with decentralized cryptocurrencies.

Central banks around the world have been exploring the possible issuance of CBDCs in response to the growing popularity of cryptocurrencies and the declining use of cash. Besides Bank of Russia, these include the European Central Bank and the U.S. Federal Reserve. The People’s Bank of China has arguably the most advanced project, with domestic trials already underway and plans to test the digital yuan in cross-border transactions.

Do you think Russia will successfully issue the digital ruble? Share your expectations in the comments section below.

Square Enix Contemplates ‘Robust Entry’ Into Blockchain Games as Part of Business Strategy

square enix

Square Enix, one of the biggest developers and publishers in the gaming world, has acknowledged the importance that NFTs and blockchain gaming could have for the future of the company. In its latest briefing session, Square Enix contemplated a “robust entry” into the blockchain games sector as part of its medium-term strategy process.

Square Enix to Enter Blockchain Market

Square Enix, developers of popular gaming franchises such as Final Fantasy, Dragon Quest, and Kingdom Hearts, has revealed intentions of expanding its business model to now tackle the blockchain gaming market. The company made these remarks in its latest results briefing session on November 5, where Square Enix stated it would make a ‘robust entry’ into the blockchain gaming arena as part of its medium-term business strategy process.

In the briefing, Square Enix recognized the change in attitude gamers are experiencing, wanting to have more control over the universe with which they interact. Furthermore, the company states that the gaming world is moving toward a decentralized model, and that token economies in each game are taking hold and expanding. The presentation in the briefing stated:

In addition to the sort of content creation we have traditionally engaged in, we will focus on blockchain games premised on token economies as a form of decentralized content.

NFT Proof of Concept Successful

A company as big as Square Enix, however, cannot simply dive into a new market without doing some kind of test beforehand. It turns out the company has already released an NFT drop based on a franchise called Million Arthur, launched back in 2012, and has been featured in manga and mobile games mostly in Japan. The company declared this was a proof of concept, and it managed to combine the NFT market with one of its franchises in a successful way.

The experiment managed to sell its whole press in less than a month, having launched on October 14th. The proof of concept now over, the initiative is expected to transition to the full commercialization phase. This means that we might see NFTs of famous franchises from the company such as Final Fantasy and Kingdom Hearts.

Square Enix is the third big gaming company that has expressed an interest in blockchain gaming in less than a month. Ubisoft and Electronic Arts are also interested in the potential of these alternative technologies as part of the new concept of a more decentralized gaming panorama.

What do you think about Square Enix and its blockchain gaming approach? Tell us in the comments section below.

Solana Ventures, FTX, and Lightspeed Launch $100 Million Blockchain Gaming Fund

Solana Ventures, the investment arm of the Solana blockchain, FTX, and Lightspeed, a venture capital firm, have announced the launch of a joint web3 gaming initiative. The fund will have $100 million at its disposal to invest in gaming projects using blockchain-based systems in the Solana network. The fund has already made its first investment in Faraway, a Solana-based gaming company.

Solana Ventures, FTX, and Lightspeed Put Funds Behind Blockchain Gaming

A new blockchain gaming fund has been launched by Solana Ventures, the investment arm of the Solana blockchain, FTX, and Lightspeed, aiming to fund the most innovative blockchain gaming proposals built on the Solana network. The joint effort will invest $100 million in these kinds of initiatives to kickstart development in the Solana ecosystem.

Amy Wu, a partner at Lightspeed, expressed excitement about this joint effort and what they are trying to achieve with the investment. She stated:

We are looking to back great teams, both crypto-native, and gaming-native. We believe gaming is one of the best opportunities to onboard the next billion users onto web3, and one of the best use cases for NFTs.

Wu also commended the thriving development that has been happening on top of Solana, which already has more than 1,000 active development teams just two years after its launch.

Faraway Gets First Investment

The fund didn’t waste time making its first investment. Faraway, a Solana-based gaming company, secured $21 million in its latest funding round, which was led by the fund. This comes to compliment the $9 million round Faraway conducted which was also led by Lightspeed earlier this year.

The latest funding round also had the participation of a16z, Sequoia Capital, Pantera Capital, Jump Capital, and Solana. Faraway is one of the first companies working in blockchain-based games with a multiplayer component on top of Solana. This makes Faraway an interesting opportunity to gauge the response such games might receive in the future.

Faraway’s first game, called Mini Royale: Nations, is a first-person shooter with a decentralized economy component. The game uses the browser as its playing platform, aiming to democratize access for users with fewer computational resources.

Alex Paley, CEO of Faraway, voiced his opinion about the future of blockchain gaming and Faraway’s focus on the subject, stating:

Blockchain technology will unlock the potential for truly player-driven, open economies and will usher in the next wave of gaming and virtual worlds. Our goal is to create extremely fun and social games with open economies, giving players true ownership over their in-game assets and a true voice in how the game evolves over time.

What do you think about this new blockchain gaming investment fund? Tell us in the comments section below.

Kazakhstan Senate Adopts Legislation Subjecting Crypto Platforms to Financial Monitoring

Kazakhstan Senate Adopts Legislation Subjecting Crypto Platforms to Financial Monitoring

The Senate in Kazakhstan has approved amendments aimed at preventing the legalization of illicit funds which will affect companies dealing with digital assets, among others. The new legislation subjects crypto service providers to the country’s financial monitoring regime.

Senators Back Law Concerning Crypto Services in Kazakhstan

Members of the upper house in Kazakhstan’s parliament, the Senate, have recently adopted new legislation tailored to improve the prevention of the laundering of proceeds of crime and the financing of terrorism. Key provisions adopted with a new law pertain to the establishment of the legal institute of ‘public officials’ and their financial auditing.

The amendments have been designed to improve the nation’s anti-money laundering framework as a whole and some of them concern cryptocurrency platforms. A report by Sputnik Kazakhstan reveals that the authors have proposed “to regulate the operation of virtual asset providers.”

Kazakhstan Senate Adopts Legislation Subjecting Crypto Platforms to Financial Monitoring

During a plenary session, Senator Olga Perepechina noted that legal persons issuing digital assets, organizing their trading as well as those providing services for the exchange of cryptocurrencies into cash, valuables ​​and other property are currently outside the scope of the financial monitoring system.

According to Perepechina, this leads to the spread of crimes related to money laundering and terrorist financing and also to the expansion of the shadow economy. Malefactors, including terrorist, are encouraged to use digital assets and electronic means in their settlements, the deputy warned.

Olga Perepechina reminded that Kazakhstan adopted a law regulating digital technologies in June of this year. It allows the issuance and circulation of digital assets in the country and at the Astana International Financial Centre (AIFC). Lawmakers now want to subject the entities carrying out such activities to financial monitoring.

The new provisions will oblige crypto companies to notify the respective government bodies upon starting or terminating their operations. The plan is to authorize the Ministry of Digital Development, Aerospace and Defense Industry to act as the main regulator.

Another proposal is to expand the powers of the Financial Monitoring Agency, by providing it with unrestricted access to the country’s register of legal entities, for example. Perepechina believes this is necessary to ensure the transparency of the official information about the legal ownership of business organizations.

Following the vote in the Senate, the law “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Counteracting the Legalization (Laundering) of Criminally Obtained Incomes and Financing of Terrorism” has been sent to the president of Kazakhstan, Kassym-Jomart Tokayev, who has to sign it.

Concerned over the power deficit that Kazakhstan is facing, Tokayev recently called for the “urgent” regulation of another crypto activity, bitcoin mining. With its low electricity rates, the Central Asian country has become a coin minting hotspot, amid an ongoing crackdown in China. Cryptocurrency miners have been largely blamed for a 7-percent increase in electricity consumption this year.

As far as crypto investing is concerned, authorities recently imposed limits on the amounts of cryptocurrency non-professional investors are allowed to buy on domestic exchanges registered at the financial hub in Nur-Sultan. Regulators explained the restrictions citing the need to protect private individuals from exposure to risks associated with digital assets.

Do you expect Kazakhstan to boost financial monitoring in the crypto space? Tell us in the comments section below.