Kazakhstan Crypto Regulation Tightens: Bans 3500 Illegal Exchange

Kazakhstan Blocks Over 3500 Crypto Exchanges Amid Regulatory Crackdown

Kazakhstan has intensified its crackdown on illegal cryptocurrency operations, with authorities announcing that they have blocked over 3,500 illegal crypto exchanges, including access to Coinbase in 2023 for alleged violations of the country’s digital asset laws. The initiative was spearheaded by the Agency for Financial Monitoring (AFM RK) in collaboration with the National Security Committee and the Ministry of Culture and Information.

Kazakhstan Crypto Regulations: Crackdown on Illegal Exchanges

In a significant move, the AFM RK liquidated 36 illegal cryptocurrency platforms in 2024, which had a combined turnover of 60 billion Kazakhstani tenge (over $113 million USD). Authorities also confiscated assets worth 4.8 million USDT and dismantled two crypto pyramid schemes, freezing 120,000 USDT and returning 545,000 USDT to victims.

These efforts underline Kazakhstan’s commitment to strengthening its cryptocurrency regulation framework. The AFM has announced that it is working with international partners to monitor crypto transactions more effectively and prevent the use of digital assets for illicit activities.

Amendments to Kazakhstan cryptocurrency regulation now hold digital asset providers accountable for money laundering violations. Authorities have also strengthened oversight of crypto transactions in financial institutions, ensuring compliance with evolving Kazakhstan crypto tax and legal frameworks.

Legal Crypto Exchanges Flourish Amid Tighter Rules

While cracking down on illegal platforms, Kazakhstan has opened its doors to regulated crypto exchanges. In 2023, Bybit obtained a full crypto license in Kazakhstan, approved by the Astana Financial Services Authority (AFSA). Similarly, Binance secured a formal license to operate in the country, reflecting the government’s willingness to foster a legal and regulated crypto ecosystem.

Kazakhstan is also exploring digital innovations with the launch of a pilot program for the digital tenge, its central bank digital currency (CBDC). Notably, the National Bank of Kazakhstan has partnered with the People’s Bank of China (PBoC) to enhance research on CBDCs, signaling a unified regional approach toward digital currencies.

Is Crypto Legal in Kazakhstan?

The answer is complex. While illegal crypto exchanges face severe penalties, regulated platforms like Bybit and Binance are flourishing under Kazakhstan’s stringent oversight. These developments place Kazakhstan as a pivotal player in shaping the future of digital assets in Central Asia.