Kazakhstan’s Financial Authorities Freeze $1.2 Million in Crypto, Shut Down 19 Illegal Exchangers

Kazakhstan has taken significant steps to combat money laundering and terrorism financing by freezing $1.2 million in cryptocurrency and shutting down 19 illegal over-the-counter (OTC) platforms. This effort is part of a broader initiative by the Financial Monitoring Agency (FMA).

Focus Areas of Financial Monitoring

According to AFM Chairman Zhanat Elimanov, the regulator is concentrating on three primary areas: illegal crypto mining, unlicensed exchanges, and unauthorized transactions involving digital assets. Since the beginning of the year, Kazakhstan has dismantled nine illegal mining operations, seizing nearly 4,000 crypto mining rigs.

Crackdown on Illegal Exchanges

In addition to freezing funds, authorities have blocked 5,500 online exchangers operating without licenses. The collective turnover of these closed OTC platforms exceeded $60 million.

Major Players Targeted

Kazakhstan’s regulatory efforts are not limited to small exchangers; major players are also under scrutiny. In December 2023, the country 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 contravene Kazakhstan’s Law on Digital Assets, which prohibits the issuance and circulation of uninsured digital assets and the operation of exchanges trading such assets.

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