The authorities in Kazakhstan have shut down more than 3,500 unauthorized cryptocurrency trading platforms as part of an effort to tackle issues related to money laundering.
In 2024, as stated by a recent press announcement from the AFM RK (the country’s financial regulatory body), they shut down 36 illegal cryptocurrency operations, collectively generating approximately $112.84 million in revenue. Additionally, they have restricted access to more than 3,500 unregistered crypto trading platforms in conjunction with the National Security Committee and the Ministry of Culture and Information.
Due to an increase in money laundering incidents, the regulatory body stated that certain digital currency exchanges were found deficient in anti-money laundering safeguards and failed to implement strict Know-Your-Customer procedures. This lack of enforcement made these platforms appealing to illicit actors, including con artists and drug smugglers.
As a part of the crackdown, the regulator also seized 4.8 million USDT from these platforms.
In addition to other actions, the administration successfully took down two cryptocurrency Ponzi schemes and retrieved approximately $545,000 USD. An extra $120,000 USD tied to these deceitful activities has been frozen as well.
Beyond other initiatives, the government successfully shut down two crypto-based Ponzi schemes and retrieved about 545,000 US dollars while freezing an additional 120,000 USD linked to these fraudulent operations.
The AFM RK will carry on working closely with its global collaborators and enhance their tools for transaction monitoring to fight crypto-related crimes. Moreover, fresh regulations are being enforced to ensure digital asset providers face consequences if they don’t adhere to Anti-Money Laundering (AML) laws.
The latest actions are part of a comprehensive clampdown on illegal cryptocurrency activities within Kazakhstan. As previously mentioned by crypto.news, the chairman of the AFM, Zhanat Elimanov, stated in an October 2024 announcement that the country will also address the issue of unlawful cryptocurrency mining, in addition to its ongoing efforts to combat unlicensed exchanges and illegal transactions involving cryptocurrencies.
Since China enacted stricter regulations against cryptocurrency mining and usage in 2021, Kazakhstan has emerged as a significant player in the global cryptocurrency market, attracting many miners and crypto-related companies who relocated there due to these changes.
According to a report published in December by RISE Research and Freedom Horizons, the rapidly growing cryptocurrency market led to an increase in tax income derived from this sector, and the number of local residents holding digital assets more than doubled in 2024.
Yet, this country continues to enforce a strict regulatory framework, denying access to foreign cryptocurrency platforms that allegedly violate their digital asset regulations. To illustrate, the U.S.-based Coinbase was restricted in December 2023 for providing uninsured cryptocurrencies.
Despite this, other competitors such as Binance and Bybit haven’t been discouraged from entering the market in Kazakhstan. In fact, they have successfully obtained initial approval for providing trading and custody services within Kazakhstan’s boundaries.
Read More
- Ludus promo codes (April 2025)
- Cookie Run Kingdom: Shadow Milk Cookie Toppings and Beascuits guide
- ZEREBRO PREDICTION. ZEREBRO cryptocurrency
- Grimguard Tactics tier list – Ranking the main classes
- DEEP PREDICTION. DEEP cryptocurrency
- Maiden Academy tier list
- Seven Deadly Sins Idle tier list and a reroll guide
- Mini Heroes Magic Throne tier list
- Fortress Saga tier list – Ranking every hero
- YouTuber Ms. Rachel Is Headed To Netflix, And I Think Parents Should Be Thrilled For One Big Reason
2025-01-08 14:00