Kazakhstan introduces stricter regulations on bank transfers to unregistered foreign crypto exchanges, strengthening its control over the sector.
Kazakhstan Moves to Restrict Crypto Transfers
Kazakhstan is set to impose stricter regulations on cryptocurrency transfers to foreign exchanges. The financial watchdog, the Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market, has proposed new measures that will require banks to block transfers to overseas crypto exchanges that aren’t registered with local authorities. This move highlights the government’s intent to maintain tighter control over its financial sector and regulate the cryptocurrency market.
New Limits on Transfers to Unregistered Exchanges
Banks in Kazakhstan will soon face strict rules on dealing with foreign crypto exchanges. The new proposal suggests that transfers to unregistered platforms will be capped at 100,000 tenge (around $205) per month. This is part of the government’s efforts to limit unregulated activities and ensure transparency in financial transactions. Additionally, banks will need to conduct enhanced checks for any transaction exceeding $1,000, even with registered exchanges.
Increased Regulation of Online Casinos
The proposal also includes restrictions on online casinos. It plans to prevent operators from accepting payments from individuals under 21 years old. The government aims to regulate the growing online gambling sector and protect younger consumers from its risks.
Kazakhstan’s Growing Crypto Regulations
Crypto exchanges operating within Kazakhstan must be registered with the financial center in Astana, which offers special benefits. Currently, ten exchanges, including major players like Binance and Bybit, are licensed to operate in the country. The new restrictions target unlicensed exchanges to ensure fair play in the growing crypto market.
Recent Actions Against Non-Compliant Exchanges
Kazakhstan has already taken significant steps to enforce its crypto regulations. The government recently froze $1.2 million in assets linked to illegal over-the-counter exchanges. This shows a strong commitment to curbing unregulated transactions. Authorities have targeted not only small players but also big names like Coinbase.
Kazakhstan’s Ban on Coinbase
In December 2023, Kazakhstan banned Coinbase, citing violations of local crypto laws. The Ministry of Information, together with the Ministry of Digital Development, restricted access to the exchange for failing to comply with the Law on Digital Assets. The law prohibits trading uninsured digital assets and aims to protect the financial ecosystem from unregulated entities.
Conclusion: Kazakhstan Strengthens Crypto Oversight
Kazakhstan is taking serious steps to regulate its cryptocurrency sector. The new measures on bank transfers to foreign exchanges show that the country is committed to controlling the flow of funds and enforcing compliance with local laws. As the nation continues to strengthen its grip on the crypto market, players in the sector will need to adapt to a more regulated environment.
Disclaimer:
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