Kazakhstan Imposes Crypto Clampdown, Blocks 980 Exchanges

• Kazakhstan Cracks Down on Unauthorized Cryptocurrency Trading Platforms
• Investigations Lead to Blocking of Crypto Exchanges
• Regulation of Cryptocurrency Trading in Kazakhstan
• Non-Compliant Exchanges and Money Laundering Cases
• Access Denial to Leading Cryptocurrency Exchange
• Registered Cryptocurrency Platforms

Kazakhstan Cracks Down on Unauthorized Cryptocurrency Trading Platforms

The Financial Monitoring Agency (FMA) of Kazakhstan announced this week that over 980 unregulated cryptocurrency trading platforms were denied access by authorities in 2023. This move signifies an extensive clampdown on exchanges that violated the latest digital asset regulations.

Investigations Lead to Blocking of Crypto Exchanges

Under the stewardship of Chairman Ruslan Ostroumov, the FMA investigations resulted in the blocking of access to 980 cryptocurrency exchanges. These exchanges, including some eminent international platforms, had not correctly registered with the government.

Regulation of Cryptocurrency Trading in Kazakhstan

A Digital Assets Law introduced in February prohibits the creation, issuing, or facilitation of cryptocurrency trading without appropriate authorization in Kazakhstan. The law mandates that platforms must acquire licenses from the Astana International Financial Center (AIFC) to cater to local users, a requirement that many platforms failed to attend to.

Non-Compliant Exchanges and Money Laundering Cases

For the year 2023, the FMA disclosed that it opened nine money laundering cases linked to non-compliant exchanges. Reportedly, these cases involved the laundering of over $36.7 million worth of funds.

Access Denial to Leading Cryptocurrency Exchange

In November, it came to light that access to Coinbase, a leading exchange, had been restricted in Kazakhstan. This action was taken by the Ministry of Culture and Information. Coinbase is now part of an extensive list of globally renowned trading platforms that have been blocked in the country.

Registered Cryptocurrency Platforms

Edited by Jonathan Stoker