Key Takeaways
- Kazakh authorities liquidated over 30 exchanges and blocked access to over 3,500 in 2024.
- Crypto exchanges are currently limited to operating within a special financial zone in Kazakhstan.
- Binance, Bybit, and over a dozen exchanges operate legally in Kazakhstan, though Coinbase was banned in 2023.
Kazakhstan’s authorities are wielding new powers to crack down on illegal cryptocurrency operations, blocking access to thousands of platforms and exchanges and breaking up crypto pyramid schemes.
2024 Closures
According to local media reports, Kazakhstan’s National Security Committee has collaborated with the Ministry of Culture and Information and the Financial Monitoring Agency (FMA) to block over 3,500 online cryptocurrency exchanges deemed illegal in 2024.
In addition, 36 “offline” exchanges with a combined turnover of over $120 million were shut down and liquidated.
The FMA also reports that 4.8 million in tether (USDT) was frozen during this operation.
Authorities also report having discovered two crypto pyramid schemes, from which they recovered and returned 545,000 USDT to victims and froze 120,000 USDT tied to the platforms.
The agency writes (translated):
“The AFM continues to work with international partners to increase control over crypto-transactions and combat their use for criminal purposes. Amendments have also been developed to the legislation that introduce liability for digital asset providers for violations in the field of money laundering. Verification of cryptocurrency transactions in financial organizations has been strengthened.”
Interestingly, Kazakh authorities blocked access to Coinbase after the exchange allegedly violated the nation’s digital asset laws.
Kazakhstan Crypto
At present, crypto exchanges are limited to operating within a special financial/legal zone within the Kazakhstan city of Astana, namely the Astana International Financial Centre (AIFC).
Currently, 21 licensed digital asset service providers and platforms, including Binance and Bybit, operate in the region.
In 2024, the Head of Kazakhstan’s National Bank, Timur Sulerimenov, expressed interest in expanding access to crypto investments by allowing citizens to invest in exchanges beyond the special AIFC zone.
Overall, the nation’s approach to regulating cryptos has been rather stringent. However, it wasn’t until recently that the government began enforcing its Law on Digital Assets, which went into effect in February 2023.
Interestingly, the National Bank of Kazakhstan launched a Central Bank Digital Currency (CBDC), which the central bank said offered improvements in value-added tax (VAT).
Eddie is a gaming and crypto writer at CCN. Covering the often weird and wonderful world of Web3 with an adoring, but skeptical eye.
Prior to CCN, Eddie has spent the past seven years working his way through the crypto, finance, and technology industry. He began with PR and journalism with Bitcoin PR Buzz and BitcoinNews.com, eventually working his way to become a copywriter with a dozen firms, including the likes of Polkadot before returning to journalism in 2023.
Having studied Radio production and journalism at University in the UK, Eddie spent a few years making podcasts and presenting on a local London radio station as he built up his writing chops.
A lifelong skateboarder, Eddie can often be found at the skatepark or touring the streets looking for something new to try. That, or kicking back playing JRPGs on his original PSP.
