Kazakhstan has ramped up its efforts to combat money laundering by blocking over 3,500 illegal cryptocurrency exchanges. This decisive action, reported by the country’s financial regulator, AFM RK, targets platforms that the authorities believe are facilitating unlawful activities, including fraud and drug trafficking.
In 2024, the government undertook the liquidation of 36 illegal crypto platforms that together accounted for a staggering 60 billion tenge (approximately $112.84 million). These exchanges were found to lack essential anti-money laundering measures and failed to implement proper Know Your Customer (KYC) protocols, making them a preferred choice for criminals.
As part of their ongoing crackdown, the AFM RK has also seized approximately 4.8 million USDT from these illegal platforms. Furthermore, the government has successfully dismantled two notorious crypto pyramid schemes, recovering 545,000 USDT and freezing another 120,000 USDT linked to fraudulent operations.
The financial authorities have emphasized their commitment to collaborating with international partners to enhance transaction monitoring tools aimed at curbing crypto-related crime. New regulations are in the works, which are intended to hold digital asset providers accountable for failing to comply with anti-money laundering laws. This initiative not only aims to protect consumers but also strives to foster a safer crypto environment.
Kazakhstan’s position as a burgeoning crypto market has raised both opportunities and challenges since it became a refuge for crypto miners following China’s crackdown in 2021. Despite the surging interest in digital assets, the nation has maintained a stringent regulatory framework.
- Major platforms like Binance and Bybit have recently acquired preliminary approval to operate within the country legally.
- Meanwhile, the blocking of platforms like Coinbase highlights Kazakhstan’s determination to enforce its digital asset laws effectively.
With continued growth in the sector leading to increasing tax revenues, there are signs of heightened interest among locals in owning digital currencies, which have reportedly doubled in 2024. This dynamic environment pairs with a motivated regulatory body focused on creating a safe trading arena for crypto enthusiasts.
In conclusion, these regulatory actions reflect Kazakhstan’s commitment to maintaining a secure and regulated financial landscape as it navigates the complexities of the rapidly evolving crypto market.
