Kazakhstan’s Financial Watchdog to Enforce New Restrictions on Crypto Transfers

The Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market, which oversees the country’s financial sector, is planning to impose new restrictions on banking transfers to overseas crypto exchanges. These measures would require banks to automatically deny transfers to any foreign crypto exchanges that are not registered with the local financial center.

According to a recent report, the regulator’s draft also includes other measures such as restricting transactions involving online casinos and prohibiting operators from accepting payments from individuals under 21 years of age.

Proposed Limits and Enhanced Due Diligence

The draft proposes limiting transfers to unregistered crypto exchanges to no more than 100,000 tenge (approximately $205) per month. Additionally, banks will be required to conduct enhanced due diligence for any transactions exceeding $1,000, even if they involve registered crypto exchanges.

Regulated Crypto Exchanges in Kazakhstan

Crypto exchanges in Kazakhstan can only offer their services if they operate within the financial center in Astana, which provides a special tax, currency, and visa regime. Currently, the country has 10 regulated crypto exchanges, including well-known names like Binance and Bybit.

Increased Regulatory Scrutiny

Recently, Kazakhstan has ramped up its regulatory oversight of non-licensed crypto exchanges. The government has frozen $1.2 million in crypto assets linked to nearly two dozen illegal over-the-counter platforms. This move is part of a broader effort to target not only small exchangers but also major players in the crypto space.

In December 2023, Kazakhstan banned Coinbase, the largest cryptocurrency exchange in the United States, due to alleged violations of local crypto regulations. The Ministry of Information confirmed that access to Coinbase was restricted at the request of the Ministry of Digital Development. The exchange’s trading activities were found to be in violation of Kazakhstan’s Law on Digital Assets, which prohibits the issuance and circulation of uninsured digital assets and the operation of exchanges trading such assets.

The law prohibits the issuance and circulation of uninsured digital assets and the operation of exchanges trading such assets.

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