Thomas Daniels
The Agency for Financial Monitoring of the Republic of Kazakhstan (AFM RK), Kazakhstan’s financial watchdog, has taken firm action against illicit cryptocurrency exchanges. Over 3,500 illicit trading sites were stopped by the regulator in 2024, and 36 unregistered platforms with a combined revenue of 60 billion tenge (roughly $112.84 million) were liquidated. The Ministry of Culture and Information and the National Security Committee worked together to carry out this operation.
The crackdown comes after an increase in money laundering operations made possible by these platforms. Many, according to authorities, lacked strong Know-Your-Customer (KYC) and anti-money laundering (AML) procedures, which attracted criminals including drug traffickers and scammers.
Additionally, 4.8 million USDT was taken from the targeted platforms by the AFM RK. In addition, the government demolished two cryptocurrency pyramid schemes, seizing USDT 545,000 and freezing USDT 120,000 associated with fraudulent activities.
The AFM RK underlined its dedication to working with global partners and improving crypto transaction monitoring technologies. In order to hold non-compliant businesses accountable and guarantee that digital asset providers adhere to AML legislation, new regulations are being introduced.
This program is a component of a larger plan to stop illegal cryptocurrency activity in the country. AFM Chairman Zhanat Elimanov reiterated Kazakhstan’s dual focus on preventing illegal cryptocurrency mining and unlicensed exchanges in October 2024.
After China clamped down on bitcoin mining in 2021, Kazakhstan became a major center for cryptocurrency operations. With the number of citizens possessing digital assets doubling in 2024, the country has seen a boom in tax revenue from the crypto sector, according to a December research by RISE Research and Freedom Horizons.
Nonetheless, the nation upholds stringent laws. For example, in December 2023, Coinbase, a U.S.-based company, was banned for selling cryptocurrency without insurance. However, international firms like Binance and Bybit have been able to secure first authorization to offer trading and custodial services inside Kazakhstan.
Kazakhstan is positioned as a regional leader and a key participant in global crypto governance as it fortifies its regulatory environment and takes a twin strategy of encouraging legal cryptocurrency growth and stifling illegal activity.
