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Kazakhstan Seizes $16.7M from Unlicensed Crypto Exchanges, Shuts Down 130 Platforms

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Kazakhstan has shut down 130 unlawful crypto exchanges suspected of laundering legal proceeds and seized digital belongings value $16.7 million.

According to a report by The Times of Central Asia, solely crypto exchanges licensed by the Astana Financial Services Authority and built-in with native banks are permitted to function in accordance with the Law on Digital Assets.

Platforms working with out such authorization are deemed unlawful and focused for termination.

The crackdown extends past exchanges, with authorities uncovering 81 shadow cash-out teams, which had a mixed turnover of 24 billion KZT ($43 million) in 2024.

Deputy Chairman of the Financial Monitoring Agency (AFM) Kairat Bizhanov emphasised that ATMs stay a essential vulnerability regardless of measures taken, with money withdrawals totaling 13.2 trillion KZT ($24.1 billion), one trillion greater than final 12 months.

Anonymous transactions carried out utilizing financial institution playing cards issued to nominal house owners allow criminals, together with cyber fraudsters and drug traffickers, to function with out figuring out senders or recipients.

The enforcement comes as Kazakhstan positions itself as Central Asia’s blockchain hub whereas sustaining strict oversight.

The country launched Alem Crypto Fund as its first nationwide crypto reserve on September 30, deciding on BNB because the preliminary digital asset via a partnership with Binance Kazakhstan.

The fund, established by the Ministry of Artificial Intelligence and Digital Development, goals to turn out to be “a dependable instrument for main buyers and a key basis for digital state reserves.”

New Regulations Target Anonymous Cash Transactions and Shell Companies(*130*)

The AFM and National Bank of Kazakhstan launched laws requiring card top-ups exceeding 500,000 KZT ($913) to enter particular person identification numbers and ensure by way of cellular purposes.

Since January 1, banks should retain ATM digicam footage for at the very least 180 days. Authorities plan to develop biometric identification, together with facial and fingerprint recognition, for all money transactions.

In cooperation with the Ministry of Justice and the Ministry of Artificial Intelligence, the AFM drafted amendments to tighten enterprise registration protocols.

The focus facilities on verifying firm founders and executives based mostly on threat standards following a surge in fictitious firms used for cash laundering and monetary fraud.

In the final three years, tax authorities have canceled the registration of three,600 shell firms related to 30,000 fraudulent transactions, totaling 280 billion KZT ($511 million).

The enforcement adopted earlier actions in 2024, when regulators closed 36 unlawful crypto exchangers with a complete turnover of 60 billion tenge ($112 million).

Just this 12 months, the AFM, together with the National Security Committee and the Ministry of Culture and Information, blocked over 3,500 illegal online crypto exchanges whereas exposing two monetary pyramids that utilized cryptocurrency to draw investments.

Authorities returned 545,000 Tether and froze 120,000 USDT throughout these operations.

Balancing Innovation With Oversight as Crypto Adoption Doubles(*130*)

Kazakhstan approved stablecoin payments for regulatory fees in September throughout Astana Finance Days, with Bybit turning into the primary alternate to signal a multilateral Memorandum of Understanding with AFSA.

The framework permits AIFC members and registration candidates to settle charges in U.S. dollar-pegged stablecoins via licensed Digital Asset Service Providers performing as fee brokers.

Little earlier than then, President Kassym-Jomart Tokayev unveiled “CryptoCity” throughout the Astana International Forum 2025, a pilot zone in Alatau the place cryptocurrencies can be utilized for on a regular basis funds as a regulated sandbox.

The proposed crypto banking system will present alternate, storage, and transaction processing companies whereas supporting anti-money laundering compliance.

The country is developing the digital tenge, a central financial institution digital foreign money, with a full rollout scheduled for the top of 2025.

Earlier in August, Kazakhstan launched Central Asia’s first spot Bitcoin ETF, with the Fonte Bitcoin ETF buying and selling on the Astana International Exchange.

The bodily backed fund, managed by Fonte Capital, makes use of BitGo Trust for chilly storage custody.

National Bank Chairman Timur Suleimenov confirmed plans to channel parts of Kazakhstan’s gold and overseas alternate reserves, together with National Fund belongings, into crypto-linked investments following methods utilized by sovereign wealth funds in Norway, the U.S., and the Middle East.

The country also launched the Solana Economic Zone Kazakhstan in June, marking the primary Web3-focused financial zone in Central Asia.

The initiative is constructed on the Solana blockchain and backed by the Solana Foundation, serving as a sandbox for rising Web3 tasks.

It presents pilot applications in tokenized capital markets, expertise improvement, and startup assist.

As a part of this system, a nationwide program targeted on Rust programming and blockchain engineering will associate with native universities to coach builders.

The publish Kazakhstan Seizes $16.7M from Unlicensed Crypto Exchanges, Shuts Down 130 Platforms appeared first on Cryptonews.

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