Kazakhstan’s Financial Monitoring Agency (FMA) has taken a firm stance against unlicensed crypto exchanges. Throughout 2023, the FMA has actively shut down access to nearly a thousand crypto exchanges operating without appropriate licensing.
Crackdown On Unlicensed Crypto Exchanges
The actions by the FMA were disclosed in a press release published on the Kazakh government’s website. The agency’s chairman, Ruslan Ostroumov, emphasized during a meeting of the Eurasian Group on Combating Money Laundering in China, noting:
This year, 980 illegal cryptocurrency exchange platforms have been blocked in the country. Nine investigations have been launched into illegal exchange transactions worth $36.7 million and laundering of criminal proceeds. Preventive measures are being taken.
Kazakhstan’s Digital Assets Law, enacted in February 2023, set the stage for these actions. The law prohibits creating, trading, and operating digital currencies and cryptocurrency exchanges without a national license.
The Astana International Financial Center (AIFC) plays a crucial role in this regulatory framework, as it is the body in control of providing initial authorization for digital currency-related operations within the economic zone of Kazakhstan.
In June, the Astana International Financial Center granted Binance a permanent license, allowing it to offer services to users in Kazakhstan. These services include exchange and conversion options, deposit and withdrawal of fiat currency, and custody of digital currency assets.
This development suggests that while the regulatory authorities in Kazakhstan are not inherently opposed to cryptocurrency exchanges, they are “firmly” against the operation of unlicensed digital asset exchanges within the region.
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Author: Samuel Edyme
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