Kazakhstan Closed Down on Illegal Crypto Exchanges: 3,500 Platforms Blocked!

Kazakhstan has taken a strong stance against illegal cryptocurrency activity, shocking the world with its massive crackdown. Over 3,500 illegal crypto exchanges have been blocked, marking a major shift in the country’s approach to digital assets. This move came after years of growing concern over unregulated crypto platforms operating within the country.

Kazakhstan Strict Action On Crypto Exchanges

The crackdown was led by Kazakhstan’s Agency for Financial Monitoring (AFM RK), in collaboration with the National Security Committee and the Ministry of Culture and Information. Together, these institutions have launched a significant operation to rid the country of illegal crypto exchanges and the problems they cause.

In 2023, Kazakhstan shocked the crypto world when it blocked access to Coinbase, one of the biggest crypto exchanges. Authorities said Coinbase violated Kazakhstan’s digital asset laws according to Coinpedia news. 

This action against a giant like Coinbase sent a clear message: Kazakhstan is serious about regulating the crypto space.

Last year in 2024, Kazakhstan stepped up its efforts even more. It closed 36 illegal crypto exchanges that were dealing with over $113 million in transactions. The authorities also froze assets worth 4.8 million USDT, which is a popular stablecoin. During this operation, officials uncovered two crypto pyramid schemes and returned over 500,000 USDT to the victims.

New Rules for Crypto Transactions

Kazakhstan is not just targeting illegal platforms. The government is also working on new laws to make sure crypto transactions follow the rules. They are focusing on stopping money laundering and other crimes linked to digital assets. 

The government is also working with international partners to enhance the country’s ability to track and regulate digital asset transactions.

Opening Doors to Legal Crypto Exchanges

While the country is cracking down on illegal platforms, Kazakhstan is also welcoming regulated crypto exchanges. In 2023, Bybit and Binance both received full licenses from Kazakhstan’s Astana Financial Services Authority (AFSA). This move shows Kazakhstan’s intention to create a safe and regulated space for crypto businesses.

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Kazakhstan’s Future Digital Currency

Kazakhstan’s central bank is also exploring the possibility of creating a digital version of its national currency, called the digital tenge. This is part of the country’s push to stay ahead in the world of digital currencies.

Kazakhstan’s actions show that it’s serious about regulating the crypto market while also embracing new technologies.