In Kazakhstan, authorities have shut down 130 illegal cryptocurrency exchanges and confiscated digital assets totaling $16.7 million. This was reported by the Deputy Chairman of the Financial Monitoring Agency of Kazakhstan, Kairat Bizhanov, during a government meeting.
This is reported by Finway
Combating Money Laundering and Illegal Operations
It is known that the closed platforms are suspected of laundering money obtained through criminal means. According to current legislation in Kazakhstan, only those cryptocurrency exchanges that have received a license from the Astana Financial Services Authority (AFSA) and are integrated with local banks are allowed to operate in the market. Any platforms operating without the appropriate permission are considered illegal.
Additionally, the Financial Monitoring Agency is actively combating illegal cryptocurrency cash-out schemes. Since the beginning of 2024, 81 shadow groups have been uncovered, with a total turnover exceeding 24 billion tenge (over $43 million). According to Kairat Bizhanov, ATMs remain a weak link for money laundering.
“Cash withdrawal volumes continue to rise, with a total of 13.2 trillion tenge ($24.1 billion) withdrawn — a trillion more than last year,” emphasized Bizhanov.
New Regulatory Measures to Limit Illegal Operations
The main danger lies in the possibility of anonymous transfers without identifying the sender or recipient. To counter these schemes, the Financial Monitoring Agency, together with the National Bank of Kazakhstan, has introduced a set of new rules:
- Top-ups to bank cards exceeding 500,000 tenge (approximately $913) now require the entry of an individual identification number and confirmation of the transaction through a mobile application;
- Banks are required to retain video recordings from ATMs for at least 180 days;
- Expanded use of biometric identification (facial recognition and fingerprints) for all cash transactions is being implemented.
It is worth noting that a pilot launch of the national stablecoin Evo (KZTE), pegged to the local currency — the tenge, has previously started in Kazakhstan.