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The recent regulatory developments around cryptocurrency exchanges in Kazakhstan, on December 7, 2023, Kazakhstan’s Financial Monitoring Agency (FMA) announced the blocking of access to almost a thousand crypto exchanges, that are serving the crypto-related services to the citizens. The crackdown is under the Digital Assets Law, passed in February 2023, which mandates national licensing for digital assets creation and trading, as well as cryptocurrency exchange activities.&nbsp; FMA halts 980 illegal Crypto exchange 
During a meeting of the Eurasian Group on Combating Money Laundering in China, FMA ChairmanRuslan Ostroumov announced that 980 illegal platforms were denied access in 2023. The FMA has also initiated nine investigations into “illegal exchange operations” and money laundering.&nbsp; 
The responsibility for granting initial approval for crypto operations lies with the Astana International Financial Center (AIFC), operating as a special economic zone in Kazakhstan. However, the Digital Assets Law aims to bring transparency and oversight to the crypto industry, ensuring compliance with national regulations.&nbsp;
Even major international platforms did not escape the crackdown, with reports emerging in November that Kazakh citizens were unable to access the<a href="https://news.todayq.com/coinbase-faces-regulatory-block-in-kazakhstan-report/" rel="noopener noreferrer nofollow"> Coinbase website</a>. The Ministry of Culture and Information issued the block following a request from the Ministry of Digital Development, accusing Coinbase of violating the Digital Assets Law.&nbsp;
Related Article: <a href="https://news.todayq.com/kazakhstan-shuts-down-106-more-bitcoin-mining-operations/" rel="noopener noreferrer nofollow">Kazakhstan shuts down 106 more Bitcoin mining operations</a> Licensed digital asset operators in Kazakhstan 
Currently, only a few license-approved digital asset operators in the country are operating, which include prominent platforms such as Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit, and Xignal&amp;MT. These platforms have successfully acquired the necessary licenses from the AIFC, indicating their commitment to complying with the evolving regulatory landscape in Kazakhstan.&nbsp;
As the nation takes decisive steps to bring order to the crypto sector, it remains to be seen how this regulatory framework will impact the broader digital asset market and influence the trajectory of cryptocurrency adoption in Kazakhstan. Such development by the government authority helps citizens and investors to protect their assets and also stop illicit activities like money laundering, human trafficking, and many more.
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Kazakhstan’s FMA shut down 980 illegal Crypto exchanges: Report

Todayq News

Other articles published on Dec 8, 2023

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