Kazakhstan Shuts Down 36 Illegal Crypto Exchanges

Like most countries, Kazakhstan is intensifying efforts to create a safe crypto market. One of its major efforts includes shutting down illegal crypto exchanges. A recent report revealed that Kazakhstan authorities shut down 36 unauthorized crypto exchanges in 2024.

The Financial Monitoring Agency of the Republic of Kazakhstan recently revealed that these exchanges were shut down as part of nationwide efforts to combat crimes like money laundering.

Kazakhstan requires exchanges to obtain necessary licenses and comply with regulatory requirements. Authorities state that these measures seek to provide a safety net for local investors.

🚨JUST IN: KAZAKHSTAN BLOCKS ACCESS TO 3,500 “ILLEGAL” CRYPTO EXCHANGES DUE TO ALLEGED VIOLATIONS OF DIGITAL ASSET LAWS

— BSCN Headlines (@BSCNheadlines) January 8, 2025

Some illegal exchanges help locals launder money by approving unvetted crypto-to-fiat transactions. The Financial Monitoring Agency explained that these exchanges “do not identify their clients and do not identify suspicious transactions. Therefore, their services are often used by cyber crooks and drug traffickers.”

These exchanges had a combined transaction volume of around $112.8 million. During the crackdown, officials seized assets valued at approximately $4.8 million.

Kazakhstan regulators announced that they have blocked more than 3,500 illegal cryptocurrency exchanges, blocking access to Coinbase in 2023 for alleged violations of digital asset laws. https://t.co/tfm7mbk5rF

— Wu Blockchain (@WuBlockchain) January 8, 2025

This isn’t the FMA’s first crackdown against illegal exchanges. In 2023, the agency blocked over 900 exchanges and investigated some for alleged money laundering activities. Reports claim that Kazakhstan has shut down over 3,000 crypto exchanges to date.

Some of the platforms were said to have operated Ponzi schemes. However, authorities acted swiftly and returned over $500k worth of USDT to victims.

Kazakhstan opens its door to crypto.

While the FMA scrutinizes crypto exchanges to ensure compliance, the agency has approved a couple of foreign exchanges to operate. These include platforms like Bybit, Upbit, Binance, and others.

#Binance Kazakhstan has become the first digital platform to obtain a full Digital Asset Trading Facility (DATF) license from the Astana Financial Services Authority (AFSA).

Now fully licensed to operate a digital assets trading facility, act as a broker-dealer, and provide… pic.twitter.com/2sKCJyLuee

— Binance (@binance) September 30, 2024

Beyond regulating crypto exchanges, Kazakhstan has also shown huge interest in other aspects of blockchain, especially CBDCs. CBDCs are central bank digital currencies, issued by the central bank of a nation. Think of them as the digital version of a country’s currency.

Kazakhstan plans to roll out its digital tenge in 2025, according to reports. The country’s financial regulators are collaborating with major players like Mastercard and Visa for its CBDC.

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