- Kazakhstan has intensified its fight against unregulated crypto activities.
- Almost a thousand exchanges have been blocked in the country.
- Multiple investigations are underway to prosecute crypto-related crimes.
Kazakhstan is cracking down on non-compliant crypto exchanges to tackle virtual asset-related crimes.
On December 7, the Financial Monitoring Agency of the Republic of Kazakhstan (AFMRK) revealed that it had restricted access to almost a thousand unlicensed crypto exchanges and launched multiple investigations into digital asset platforms suspected of flouting anti-money laundering laws.
Kazakhstan Blocks 980 Crypto Exchanges
While speaking at the 39th Eurasian Group (EAG) Plenary Week in Sanya, China, the Kazakh delegation showcased the proactive steps the country has taken to foster international cooperation in crypto regulation and promote a safer digital asset landscape.
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Notably, the Head of the Department at AFMRK, Ruslan Ostroumov, stated that in 2023, the regulator blocked 980 “illegal crypto exchange platforms” operating within the country, including Coinbase, the world’s second-largest crypto exchange by trade volume.
The move follows the enactment of The Digital Assets Law in February, which prohibits crypto-native companies from creating and facilitating the exchange of virtual assets without a national license or preliminary approval by the Astana International Financial Center (AIFC), a special economic zone in Kazakhstan.
Besides restricting access to non-compliant crypto platforms, the regulator noted that multiple investigations into illegal exchange transactions worth millions of dollars are underway.
Investigations into Illegal Crypto Exchange Activities
To identify and prosecute criminal elements in the domestic virtual asset ecosystem, the Kazakh finance regulator has launched nine investigations into suspicious crypto exchange transactions worth $36.7 million and suspected money laundering activities.
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Beyond proactive enforcement, Kazakhstan has implemented education programs and awareness campaigns to sensitize the public on cryptocurrency risks and unregulated service providers.
Crypto exchanges that have the approval to operate in Kazakhstan include Binance, Upbit, Bybit, CaspianEx, Xignal&MT, Biteeu, ATAIX, and CaspianEx.
Read how Coinbase was banned in Kazakhstan:
Coinbase Banned in Kazakhstan for Breaching Crypto Law
Stay updated on why Binance canceled its application for an Abu Dhabi license:
Binance Cancels Abu Dhabi Crypto Licensing Bid
