Summary:
Kazakhstan blocks over 3,500 illegal cryptocurrency exchanges.
36 illegal exchanges liquidated in 2024 with US$113 million turnover.
4.8 million USDT in assets frozen and confiscated from illegal platforms.
Bybit and Binance expand operations in Kazakhstan with new licenses.
National Bank of Kazakhstan launches pilot for digital tenge (CBDC).
Authorities in Kazakhstan have taken decisive action to block more than 3,500 cryptocurrency exchanges operating illegally, as revealed by the Kazakh regulator, AFM RK. This crackdown is the result of collaborative efforts between the National Security Committee and the Ministry of Culture and Information.
Liquidation of Illegal Crypto Platforms
In 2024, the regulator successfully liquidated 36 illegal crypto exchanges that had a combined turnover of 60 billion Kazakhstani tenge (over US$113 million). Additionally, assets worth 4.8 million USDT, a widely used stablecoin, were frozen and confiscated from these platforms. Authorities also uncovered two cryptocurrency pyramid schemes, managing to return 545,000 USDT to victims and freezing 120,000 USDT held by the platforms.
“AFM continues to collaborate with international partners to strengthen control over crypto transactions and combat their criminal use. Legislative amendments are being developed to introduce liability for digital asset providers in cases of money laundering violations,” the regulatory announcement stated.
Major Exchanges Betting on Kazakhstan
In a contrasting trend, major global crypto exchanges are expanding into Kazakhstan. In 2023, Bybit secured a full crypto exchange license from the Astana Financial Services Authority (AFSA), and Binance received formal consent from the AFSA to pursue a full regulatory license. Furthermore, the National Bank of Kazakhstan has initiated a pilot program for the development of the digital tenge, a central bank digital currency (CBDC), showcasing enhancements in value-added tax (VAT) reimbursement processing using digital fiat.
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