Kazakhstan seized $112M in assets while advancing Anti-Money Laundering efforts and preparing for the digital tenge launch.
Crypto Exchange Crackdown
In 2024, Kazakhstan’s Financial Monitoring Agency (FMA) shut down 36 illegal cryptocurrency exchanges operating without authorization. These platforms collectively handled 60 billion Kazakhstani tenge ($112.8M). Authorities seized $4.8M in additional assets during the crackdown.
Money Laundering Concerns
The FMA highlighted that unlicensed exchanges often facilitate money laundering by allowing unvetted fiat-to-crypto transactions. These services are frequently exploited by cybercriminals and drug traffickers.
“Such entities (illegal crypto exchanges) do not identify their clients and do not identify suspicious transactions. Therefore, their services are often used by cyber crooks and drug traffickers.”
A Drop from Previous Years
Compared to 2023, when 980 illegal crypto exchanges were blocked, 2024 saw a 96% reduction. Despite this, over 3,500 unauthorized platforms have been dismantled since Kazakhstan’s crackdown began.
Legitimate Exchanges Operate Legally
Licensed exchanges like Binance, Bybit, and Upbit continue operations within the country. Meanwhile, authorities have frozen funds and returned investments to victims of pyramid schemes uncovered during investigations.
Digital Tenge Nears 2025 Launch
Kazakhstan is on track to launch its central bank digital currency (CBDC), the digital tenge, in 2025. Collaboration with Visa, Mastercard, and local banks will enable global usability through platforms like Apple Pay and Samsung Pay.
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