In response to unlawful cryptocurrency trading, Kazakhstan has taken action by closing 36 illicit platforms, securing their assets, and tightening regulations to establish a safe, legally-compliant digital currency ecosystem.
2023 saw Kazakhstan intensify its efforts to curb illegal cryptocurrency trading activities. Over 3,500 unauthorized exchanges were halted by regulators as part of this campaign. This joint initiative involved the National Security Committee and the Ministry of Culture and Information. Furthermore, the government also barred access to the Coinbase platform due to alleged violations of digital asset laws within Kazakhstan’s jurisdiction.
2024 saw Kazakhstan’s financial authorities taking stronger action, as they closed down 36 unlawful crypto trading platforms. The cumulative trade volume of these platforms exceeded 60 billion Kazakhstani tenge, which is equivalent to over $113 million. In addition, the authorities seized and confiscated approximately 4.8 million USDT (a stablecoin) from these platforms as part of their broader strategy to combat illicit activities in Kazakhstan’s cryptocurrency market.
The clampdown didn’t stop; authorities dismantled two illegal cryptocurrency pyramid schemes. As a result, they returned over half a million USDT to the defrauded individuals and froze an extra 120,000 USDT on the platforms. These actions suggest that Kazakhstan is taking steps to shield its citizens from engaging in fraudulent activities within the cryptocurrency market.
Kazakhstan Tightens Regulations on Crypto While Supporting Innovation
As an analyst, I’ve been actively collaborating with international partners, including the financial regulator of Kazakhstan, AFM RK. Our shared objective is to enhance the surveillance of cryptocurrency transactions, aiming to deter criminal activity. Additionally, the government has put forth proposals to amend the country’s laws, introducing stricter penalties for digital asset providers found involved in money laundering activities.
As a crypto investor, I’ve noticed that governments aren’t just focusing on enforcement when it comes to cryptocurrencies. They’re also taking careful steps to regulate the market. For instance, in 2023, Bybit was granted a full crypto exchange license by the Astana Financial Services Authority (AFSA). This regulatory approval not only allows them to function within the country but also indicates that Kazakhstan is embracing regulated crypto exchanges. This move underscores their commitment to fostering a legal and compliant environment for cryptocurrency trading.
Furthermore, Kazakhstan is actively developing a digital form of its currency, known as the digital tenge. The National Bank of Kazakhstan has initiated a pilot program for this central bank digital currency (CBDC). Additionally, they have simplified the process for reclaiming Value Added Tax (VAT) with digital fiat.
Ultimately, the digital currency sector is experiencing both innovation and rigorous regulation in Kazakhstan. They are striving to transform into a nation that ensures the security of digital assets, implements proper regulations, and welcomes cutting-edge technology.
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2025-01-10 06:58