Kazakhstan liquidated 36 crypto exchanges with $100 million turnover and takes $4.8 million USDT Oluwapelumi Adejumo · 10 hours ago · 2 minutes checked out
Kazakhstan’s stringent guidelines and worldwide collaborations intend to get rid of prohibited crypto activities and boost AML compliance.
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Upgraded: Jan. 8, 2025 at 3:09 pm UTC
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Kazakhstan heightened its crackdown on unlawful crypto exchanges in 2024, targeting platforms connected to cash laundering activities.
According to a press declaration, the Asian nation’s Financial Monitoring Agency (AFM) revealed that it liquidated 36 unapproved exchanges with a combined turnover of more than $100 million and limited access to over 3,500 unregistered crypto trading platforms.
Cash laundering issues
The AFM’s actions come from growing issues over the abuse of uncontrolled exchanges for criminal activities such as cyber scams and drug trafficking. Much of these platforms did not have anti-money laundering (AML) procedures and know-your-customer (KYC) procedures, making them appealing tools for illegal deals.
In a collective effort with the National Security Committee and the Ministry of Culture and Information, authorities took $4.8 million in USDT and took apart 2 crypto pyramid plans. This operation recuperated an extra $545,000 USDT and froze $120,000 USDT.
To enhance its position versus monetary criminal offenses, Kazakhstan presented legal modifications that hold digital possession suppliers liable for AML infractions. These modifications consist of boosted confirmation procedures for crypto deals within banks.
Kazakhstan’s procedures show its growing concentrate on managing the crypto sector and combating the exploitation of digital possessions for unlawful functions. The AFM likewise prepares to team up with worldwide partners to broaden efforts to resolve criminal activities connected to cryptocurrencies.
Kazakhstan’s crypto relationship
Kazakhstan was as soon as a bigger gamer in the crypto market, especially after China’s 2021 crackdown on crypto mining resulted in an increase of miners. This scenario led to the nation briefly ranking as the world’s second-largest Bitcoin manufacturer.
Strict guidelines have actually considering that triggered an exodus of miners, with the nation now contributing less than 5% of the worldwide Bitcoin network hashrate.
In spite of these modifications, regional interest in digital possessions has actually grown. A report exposed that the variety of Kazakhstani citizens owning cryptocurrencies had actually doubled in the previous year, signifying an ongoing interest in the developing digital economy.
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