Kazakhstan freezes $1.2m in crypto linked to 19 illegal OTC platforms

Kazakhstan’s financial authorities have frozen $1.2 million in crypto and shut down 19 illegal exchangers with a turnover exceeding $60 million.

Kazakhstan has frozen $1.2 million in cryptocurrency and shut down 19 illegal over-the-counter platforms as part of a broader effort by the Financial Monitoring Agency to combat money laundering and terrorism financing.

Per AFM Chairman Zhanat Elimanov, the regulator is now focused on three main areas: illegal crypto mining, unlicensed exchanges, and unlawful transactions involving digital assets. As a result of continuous efforts, since the beginning of the year, Kazakhstan has dismantled nine illegal mining operations, confiscating nearly 4,000 crypto mining rigs.

In addition to the frozen funds, the authorities have also blocked 5,500 online exchangers operating without licenses. The total turnover of the closed OTC platforms exceeded $60 million.

In its efforts to regulate the crypto industry, Kazakhstan is targeting not only small exchangers but also major players. In December 2023, the country banned Coinbase, the largest cryptocurrency exchange in the United States, over allegations of violations of local crypto regulations.

At the time, the Ministry of Information confirmed that access to Coinbase was restricted at the request of the Ministry of Digital Development due to the exchange’s trading activities, which were found to violate Kazakhstan’s Law on Digital Assets. The law prohibits the issuance and circulation of uninsured digital assets and the operation of exchanges trading such assets.