Kazakhstan Cracks Down on Illicit Crypto Activities
Kazakhstan authorities have taken a significant step in addressing money laundering concerns by blocking over 3,500 unregistered cryptocurrency exchanges. According to a press release from the country’s financial watchdog, the Agency for Financial Monitoring and Regulation of the Republic of Kazakhstan (AFM RK), the regulator has liquidated 36 illegal crypto platforms in 2024 with a combined turnover of 60 billion tenge, roughly $112.84 million.
The regulator collaborated with the National Security Committee and the Ministry of Culture and Information to block access to these unregistered crypto trading platforms. The move comes after an uptick in money laundering activities, with the regulator citing that these exchanges lacked anti-money laundering measures and did not impose proper Know-your-customer protocols, making them a preferred channel for criminals, such as scammers and drug traffickers.
Crackdown Efforts and Seizures
As part of the crackdown, the regulator seized 4.8 million USDT from these platforms. Additionally, the government managed to dismantle two crypto pyramid schemes and recovered 545,000 USDT while freezing an additional 120,000 USDT linked to these fraudulent operations.
Future Plans and Regulations
The AFM RK will continue to collaborate with its international partners and improve tools to bolster transaction monitoring to combat crypto crime. New regulations are being introduced to hold digital asset providers accountable for failing to comply with AML laws.
These efforts are part of a broader crackdown on illicit crypto activities in Kazakhstan. The country aims to mitigate unlawful crypto mining alongside its ongoing efforts to target unlicensed exchanges and unlawful transactions involving crypto.
Kazakhstan’s Growing Crypto Market
Kazakhstan has become a key cryptocurrency market, especially since China’s crackdown on crypto mining and crypto use in 2021 led to an exodus of miners and crypto-related businesses to the region. The country has maintained a stringent regulatory environment, blocking access to foreign crypto platforms it deems have breached its digital asset laws.
Despite the stringent regulations, the nation has seen a hike in tax revenue generated from the sector, and the number of locals owning digital assets has doubled in 2024. Other players like Binance and Bybit have secured preliminary approval to offer trading and custodial services within Kazakh borders.
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