In a decisive move to regulate the burgeoning cryptocurrency landscape, Kazakhstan Financial Monitoring Agency (FMA) announced on December 7, 2023, that it had successfully blocked access to nearly a thousand crypto exchanges operating without proper registration in the country. The revelation came through a press release published on the government’s official website, shedding light on the FMA’s proactive efforts to curb illicit financial activities related to digital assets.
Ruslan Ostroumov, the chairman of the FMA, disclosed this information during a meeting of the Eurasian Group on Combating Money Laundering held in China. The agency not only denied access to 980 illegal platforms but also initiated nine investigations into what it termed as “illegal exchange operations” and money laundering. These stringent measures align with the Digital Assets Law, enacted in February 2023, which mandates a national license for engaging in digital currency creation and trading, as well as cryptocurrency exchange activities.
Operating as a special economic zone within Kazakhstan, the Astana International Financial Center (AIFC) has been tasked with granting preliminary approval for cryptocurrency operations in the country. To date, platforms such as Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit, and Xignal&MT have received the necessary approvals to conduct their operations within the legal framework.
Interestingly, among the exchanges denied access, some major international platforms featured on the list. In November, Kazakh citizens found themselves unable to access the popular Coinbase website, following an order from the Ministry of Culture and Information. Ministry representatives clarified that the directive originated from the Ministry of Digital Development, accusing Coinbase of violating the Digital Assets Law.
This comprehensive crackdown reflects Kazakhstan’s commitment to fostering a regulated and compliant cryptocurrency environment while safeguarding its citizens from potential financial risks associated with unlicensed exchanges. The government’s proactive stance, as demonstrated by the FMA’s actions, underscores the evolving regulatory landscape surrounding digital assets on a global scale.