Kazakhstan Blocks Access to Unauthorized Crypto Exchanges
This year, the Financial Monitoring Agency (AFM) in Kazakhstan has taken action against nearly a thousand crypto exchanges that were operating without proper registration, denying them access to the country’s citizens.
The AFM revealed in a press release that it blocked 980 illegal platforms in 2023 and initiated nine investigations into “illegal exchange operations” and money laundering. The chairman of the AFM, Ruslan Ostroumov, shared this information during a meeting on Combating Money Laundering in China.
Digital Assets Law Restricts Crypto Activities
Kazakhstan’s Digital Assets Law, implemented in February 2023, prohibits the creation and trading of digital currencies and cryptocurrency exchanges without obtaining a national license. The Astana International Financial Center (AIFC), operating as a special economic zone, is responsible for granting preliminary approval for operations.
Major International Platforms Blocked
A number of major international platforms have been blocked due to the lack of a national license. In November, Kazakh citizens were unable to access the Coinbase website after it was blocked by an order from the Ministry of Culture and Information. The Ministry stated that the request came from another government body, the Ministry of Digital Development, which accused Coinbase of violating the Law on Digital Assets.
Currently, only Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit, and Xignal&MT have been approved to operate in Kazakhstan.
Hot Take: Kazakhstan Cracks Down on Unauthorized Crypto Exchanges
Kazakhstan’s Financial Monitoring Agency has taken significant measures to block unauthorized crypto exchanges operating in the country. With nearly a thousand illegal platforms denied access to citizens and investigations launched into money laundering, the government is enforcing its Digital Assets Law. This law requires a national license for the creation and trading of digital currencies and cryptocurrency exchanges. Major international platforms such as Coinbase have been blocked due to non-compliance with the law. While some approved platforms can operate in Kazakhstan, it remains to be seen how these regulatory actions will impact the crypto landscape in the country.
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