Kazakhstan authorities crack down on unlicensed crypto platforms and mining to combat financial crimes.
Kazakhstan’s Major Crackdown on Illegal Crypto Platforms
Kazakhstan’s Financial Monitoring Agency (AFM) has frozen $1.2 million worth of cryptocurrency. The agency also shut down 19 illegal over-the-counter (OTC) platforms. This operation aims to curb money laundering and illegal transactions tied to digital assets in the country.
Illegal Crypto Platforms With Massive Turnover
The 19 closed OTC platforms had a total turnover of more than $60 million. Authorities also blocked 5,500 unlicensed online exchangers operating without approval. This shows the vast scale of illegal trading within the country’s cryptocurrency sector.
Focus on Illegal Crypto Mining
In addition to targeting unlicensed exchanges, the government cracked down on illegal crypto mining. Authorities shut down nine illegal mining operations this year alone. These operations used nearly 4,000 crypto mining rigs, which were confiscated as part of the raid.
Targeting Major Players in the Crypto Industry
Kazakhstan’s regulatory efforts do not only focus on small players. In December 2023, the country banned Coinbase, the largest U.S. cryptocurrency exchange. Coinbase allegedly violated Kazakhstan’s local crypto regulations, leading to a complete access restriction.
Protecting Kazakhstan’s Crypto Market
Kazakhstan is making significant efforts to ensure a legal and transparent cryptocurrency market. The government continues to freeze funds, block illegal exchanges, and enforce strict regulations. These actions are meant to foster a safer trading environment for investors.
The Future of Crypto Regulation in Kazakhstan
Kazakhstan’s crypto industry is moving towards tighter regulation. This crackdown could set the stage for a more secure and well-regulated market. As the country refines its crypto laws, traders and investors will likely benefit from a more transparent system.
Disclaimer:
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