Kazakhstan Blocks Almost 1,000 Crypto Exchanges Amid Regulatory Push
Summary:
Kazakhstan's Financial Monitoring Agency (AFM) blocked nearly 1,000 cryptocurrency exchanges for lack of proper registration in 2023. The AFM launched an investigation into illegal currency exchange operations and money laundering. The country's Digital Assets Law prohibits digital currency creation and trading without a national license. Some major international platforms have been blocked due to no license, including Coinbase following an order from the Ministry of Culture and Information. Currently, Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit, and Xignal&MT are approved to operate.
In the current year, the Financial Monitoring Agency (AFM) of Kazakhstan has shut down access to nearly a thousand cryptocurrency exchanges; these platforms had been servicing the nation's populace without the necessary official registration. As reported in the official bulletin released on December 7 and made available on the government's web portal, the AFM enforced the restriction on 980 unauthorized platforms within the year 2023. The regulatory body also initiated nine probes into “unlawful currency exchange dealings” and maneuvers to launder money. These facts were unveiled by the AFM's head, Ruslan Ostroumov, during the assembly of the Eurasian Group to Counter Money Laundering hosted in China.
Furthermore, the law governing Digital Assets, formally made binding from February 2023, strictly bans the creation as well as trading of digital monies and cryptocurrency exchange practices, unless there is possession of a national license. The Astana International Financial Center (AIFC), which operates as a peculiar economic enclave within Kazakhstan, is charged with giving this provisional approval for business proceedings. The list of exchanges that have been restricted due to a lack of a national license enumerates a number of substantial international platforms.
During November, it was reported that the residents of Kazakhstan could not reach the Coinbase site, following its blockage due to an order issued by the Ministry of Culture and Information. Representatives from the Ministry gave clarifications to the media, stating that the command had originated from a different governmental sector, the Ministry of Digital Development. It had indicted Coinbase of contravening the Law concerning Digital Assets.
As of now, the cryptocurrency exchanges – Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit, and Xignal&MT - have been officially authorized to run their operations within the country. As added information, legal luminaries in the United States are driven by apprehension and skepticism to consider crypto regulations.
Published At
12/8/2023 1:39:22 PM
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