Kazakhstan’s Financial Supervisory Authority (AFM RK) recently announced that it has blocked more than 3500 illegally operating cryptocurrency exchanges. This action was assisted by the National Security Committee and the Ministry of Culture and Information, and has achieved remarkable results.
2024 illegal exchanges will be liquidated in 36
In 2024, regulators liquidated a total of 36 illegal cryptocurrency exchanges, with a total trading volume of 600 billion Kazakh tenge (more than $1.13 million) on these platforms. In addition, the authorities also froze and confiscated approximately $480 million worth of USDT (a popular stablecoin) assets from these exchanges.
In addition to the liquidation of illegal exchanges, the authorities also cracked down on two cryptocurrency Ponzi schemes, helped victims recover 54.5 USDT, and froze 12 USDT funds held by related platforms.
Official statement and future plans
“The AFM continues to work with international partners to strengthen controls on cryptocurrency trading and combat its use in criminal activities. Legislation has also been amended to include new legal liabilities for digital asset service providers in the event of anti-money laundering violations. At the same time, financial institutions’ cryptocurrency trading checks have also been strengthened,” the regulator said in a statement.
The statement also noted: “The AFM will continue to optimize its tools for monitoring financial transactions and effectively respond to criminal activities involving virtual assets.”
Kazakhstan attracts global cryptocurrency giants
Despite the continued intensification of the crackdown on illegal exchanges, world-renowned cryptocurrency exchanges are still accelerating their layout in the Kazakhstan market. In 2023, Bybit obtained a full crypto exchange license issued by the Astana Financial Services Authority (AFSA). At the same time, Binance also received formal approval from AFSA and obtained a full regulatory license.
In addition, the National Bank of Kazakhstan has launched a pilot project to explore the development of digital tenge (central bank digital currency, CBDC). The bank improved the value-added tax (VAT) refund process through digital fiat currency, showing the potential of digital currency in government services.
Original link:https://www.financemagnates.com/cryptocurrency/kazakhstan-blocks-over-3500-illegal-cryptocurrency-exchanges/