Kazakhstan has ramped up its regulatory measures against the illicit cryptocurrency market by blocking over 3,500 exchanges that were operating without proper authorization. This initiative, a collaborative effort between the National Security Committee and the Ministry of Culture and Information, underscores the government’s commitment to maintaining a secure digital ecosystem.
In a significant move, authorities liquidated 36 illegal cryptocurrency exchanges in 2024, which collectively processed transactions worth approximately 60 billion Kazakhstani tenge, equivalent to more than $113 million USD. Alongside these actions, the regulatory body seized and froze assets totaling about 4.8 million USDT, a commonly used stablecoin, that were associated with these unlicensed platforms.
In addition to tackling unauthorized exchanges, the authorities exposed two pyramid schemes related to cryptocurrencies, resulting in the recovery of 545,000 USDT for the victims while freezing an additional 120,000 USDT held by those schemes.
The regulatory agency is committed to enhancing oversight on cryptocurrency transactions and has been working with international partners to strengthen controls, particularly to prevent the misuse of digital assets for criminal activities. New amendments have been introduced into legislation, imposing liability on digital asset providers in instances of money laundering offenses. Furthermore, the scrutiny of cryptocurrency transactions within financial institutions has been intensified, aimed at identifying suspicious activities more effectively.
Responding to the developing landscape, global cryptocurrency exchanges are beginning to establish their foothold in Kazakhstan. Bybit, for example, received a full crypto exchange license from the Astana Financial Services Authority in 2023, indicating a favorable regulatory environment. Similarly, Binance has also been granted formal consent by the authority, moving closer to obtaining its own full operating license in the country.
To further advance its digital economy, the National Bank of Kazakhstan has initiated a pilot program exploring the digital tenge, which is a proposed central bank digital currency (CBDC). This program aims to innovate financial processes, including improvements in the value-added tax reimbursement system through the adoption of digital currencies.
The overarching goal of Kazakhstan’s regulatory framework is to foster a secure and transparent cryptocurrency market while attracting legitimate crypto businesses to operate within its jurisdiction. The measures enforced not only protect consumers but also lay the groundwork for the future of digital currency in the nation.