Kazakhstan 2024 Crypto Crackdown: Kazakhstan shut down 36 illegal crypto exchanges, seized $112 million in assets, and worked to stop money laundering.
In 2024, Kazakhstan made a strong move against illegal cryptocurrency activities by increasing its efforts to regulate the digital asset market. The country shut down 36 illegal crypto exchanges that were operating without permission, helping with illegal transactions and supporting money laundering. This action shows Kazakhstan’s commitment to controlling the fast-growing crypto industry. It aims to protect its financial system and follow global rules to stop money laundering.
Unprecedented Action: 36 Illegal Crypto Exchanges Shut Down
Kazakhstan’s Financial Monitoring Agency (FMA) announced it shut down 36 illegal cryptocurrency exchanges. These exchanges handled over 60 billion Kazakhstani tenge (about $112.8 million) in transactions. This shows the size of the illegal activities. The action is part of Kazakhstan’s ongoing effort to stop money laundering and other crimes linked to unregulated digital platforms.
The FMA said that these unlicensed exchanges didn’t follow the rules, like identifying customers and watching for suspicious transactions. Because of this, these platforms were used by cybercriminals and others involved in crimes like drug trafficking and financial fraud. The FMA stressed how important it is to shut down these illegal exchanges to protect Kazakhstan’s financial system.
The Scale of the Seizures: $4.8 Million in Assets Frozen
Along with shutting down the exchanges, authorities took control of assets worth about 2.5 billion Kazakhstani tenge, or roughly $4.8 million USD. Taking these funds shows how serious the government is about stopping illegal crypto activities. Also, the authorities returned over $545,000 to victims who had lost money in scams, like pyramid schemes run by some of the closed platforms.
The FMA’s actions to protect consumers and financial institutions have been praised by the global regulatory community. Kazakhstan is improving its rules to stop cryptocurrencies from being used for illegal activities.
Continued Focus on Anti-Money Laundering (AML)
Closing illegal crypto exchanges is part of Kazakhstan’s bigger plan to stop money laundering and other crimes related to cryptocurrencies. The country’s regulators are working with international groups to get better at watching transactions and making stronger laws to fight new financial crimes.
Kazakhstan has been active in dealing with the risks of unregulated crypto exchanges, which criminals can use for money laundering. By shutting down illegal exchanges Kazakhstan shows it is serious about stopping money laundering. It is also making sure the crypto market is safe and legal.
The Impact on the Legal Crypto Market
Kazakhstan has been closing illegal crypto exchanges. At the same time, it is helping legal crypto platforms. Global exchanges like Binance, Bybit, and Upbit have gotten licenses to operate in Kazakhstan. This lets them keep offering services in the country with strict rules.
The government clearly supports legal and well-regulated crypto exchanges. Its goal is to create a safe and stable environment for businesses and consumers. This approach—shutting down illegal exchanges and supporting legal ones—shows Kazakhstan’s plan to balance growth and security in the digital asset market.
Looking Ahead: Kazakhstan’s Central Bank Digital Currency
Kazakhstan is also creating its own digital currency called the digital tenge. Work on it started in February 2023, and it is planned to launch in 2025. This digital money will be used in the country’s payment systems and let people make payments around the world using digital tenge through services like Apple Pay and Samsung Pay.
The digital tenge is part of Kazakhstan’s plan to update its financial system and improve digital payments. It will also provide a safe, regulated alternative to illegal crypto platforms, helping reduce the risks of using decentralized digital currencies.
Kazakhstan 2024 Crypto Crackdown: Conclusion
Kazakhstan’s strong actions to shut down illegal crypto exchanges, along with its efforts to stop money laundering and plans for a central bank digital currency, show the country’s commitment to controlling the crypto industry. Kazakhstan is acting quickly to stop illegal activities in the crypto world. This helps keep its financial system safe, clear, and in line with global rules.
As the country moves forward with these plans, it is set to play an important role in shaping the future of digital currencies while protecting its people and economy from financial crime.
Also Read: Crypto Market Crash: Bitcoin Dips To $96K, Millions Lost On Jan 8th, 2025
