Kazakhstan Shuts Down Unlicensed Crypto Exchanges
The Financial Monitoring Agency (FMA) of Kazakhstan has taken strong action against unlicensed crypto exchanges. In 2023 alone, the FMA has closed access to nearly a thousand crypto exchanges that were operating without proper licensing. The agency’s chairman, Ruslan Ostroumov, announced this during a meeting in China, revealing that nine investigations have been launched into illegal exchange transactions and money laundering.
Enforcement of Digital Assets Law
Kazakhstan’s Digital Assets Law, implemented in February 2023, paved the way for these actions. This law prohibits the creation, trading, and operation of digital currencies and cryptocurrency exchanges without a national license. The Astana International Financial Center (AIFC) is responsible for providing initial authorization for digital currency-related operations within Kazakhstan’s economic zone.
Binance Receives License
In June, Binance was granted a permanent license by the Astana International Financial Center, allowing it to provide services to users in Kazakhstan. This includes exchange and conversion options, fiat currency deposit and withdrawal, and custody of digital currency assets. This indicates that while regulatory authorities in Kazakhstan are not opposed to cryptocurrency exchanges, they are firmly against unlicensed digital asset exchanges.
Coinbase Blocked
Kazakhstan’s regulatory measures affected Coinbase, one of the world’s leading digital currency exchanges. The Ministry of Culture and Information announced the blocking of Coinbase due to alleged non-compliance with digital assets legislation and fraudulent activities. The request to block access reportedly came from the Ministry of Digital Development, Innovation, and Aerospace Industry.
Enforcement under Communications Act
The enforcement against Coinbase and other platforms was carried out under the Communications Act of Kazakhstan. This legislation requires internet service providers to restrict access to sites hosting unregistered and non-compliant digital currency exchanges.
Hot Take: Crypto Market Remains Bullish
Despite the crackdown on crypto in Kazakhstan, the global crypto market continues to show bullishness. In the past 24 hours, the overall market value has surged by nearly 3%, reaching a valuation of $1.7 trillion.
Featured image from Unsplash, Chart from TradingView
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