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

Kazakhstan’s financial authorities froze $1.2 million worth of cryptocurrency and closed 19 illegal exchanges with turnover exceeding $60 million.

Kazakhstan has frozen $1.2 million worth of 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 terrorist financing.

According to AFM President Zhanat Elimanov, the regulator is currently focusing on three main areas: illegal crypto mining, unlicensed exchanges and illegal transactions involving digital assets. As a result of continuous efforts, since the beginning of the year, Kazakhstan has dismantled nine illegal mining operations and seized nearly 4,000 crypto mining rigs.

In addition to the frozen funds, authorities also blocked 5,500 online exchanges operating without a license. The total turnover of closed OTC platforms exceeded 60 million dollars.

Kazakhstan is targeting not only small exchanges but also big players in its efforts to regulate the crypto industry. In December 2023, the country banned Coinbase, the largest US cryptocurrency exchange, due to alleged 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 that were found to violate the Kazakhstan Digital Assets Law. The law prohibits the issuance and circulation of uninsured digital assets and the operation of exchanges that trade such assets.