Kazakhstan’s Financial Monitoring Agency (AFM) has taken a firm stance against unregistered cryptocurrency exchanges. In 2023 alone, the agency shut down access to 980 platforms operating in defiance of the national licensing requirements. This crackdown is part of Kazakhstan’s comprehensive strategy to bring order to its digital currency market, ensuring that all exchanges serving its citizens fully comply with the country’s laws.
Rigorous enforcement to uphold digital asset law
The chairman of the AFM, Ruslan Ostroumov, announced these sweeping measures at an international meeting focused on combating money laundering. Alongside blocking unregistered exchanges, the AFM has also launched nine investigations into suspected illegal activities in the crypto exchange sector. This robust approach aligns with Kazakhstan’s Digital Assets Law, enforced since February 2023, which mandates a national license for all digital currency creation, trading, and exchange operations.
The enforcement of this law has even impacted major international platforms. Notably, Coinbase faced access restrictions for Kazakh users in November due to alleged non-compliance. These steps, directed by the Ministry of Digital Development and Culture and Information, reflect Kazakhstan’s serious commitment to a regulated digital asset environment.
A shift towards licensed crypto trading
Despite these stringent measures against unlicensed entities, the Astana International Financial Center (AIFC) has greenlit several cryptocurrency platforms. Binance, Bybit, and others have received the necessary approvals, ushering in a new era of regulated and secure digital currency trading in Kazakhstan. This move signifies Kazakhstan’s balanced approach, welcoming innovation in the digital finance sector while maintaining strict regulatory control.
Kazakhstan’s actions mirror a growing global inclination towards regulating the digital asset space. The country establishes itself as a cautious yet forward-thinking participant in the global cryptocurrency arena by ensuring that only licensed exchanges operate within its borders. Balancing innovation with regulation is pivotal for the sustainable growth and stability of the cryptocurrency market, both in Kazakhstan and internationally.