Kazakhstan proposes stricter controls for bank transfers to foreign crypto exchanges: report

Kazakhstan’s financial watchdog is preparing to impose new restrictions that will require banks to automatically reject banking transfers to overseas crypto exchanges.

The Agency for Financial Market Regulation and Development of the Republic of Kazakhstan, which oversees the country’s financial sector, is considering new measures that would require banks to refuse transfers to overseas crypto exchanges that are not registered with the local financial center.

In addition to transfer limits to crypto exchanges, the regulator’s draft also proposes restricting transactions related to online casinos and banning operators from accepting payments from individuals under 21, according to a Wednesday report from Russian state-led news outlet TASS.

The draft also proposes blocking transfers not exceeding a total of 100,000 tenge (about $205) per month when dealing with unregistered crypto exchanges. Additionally, banks will be required to conduct enhanced due diligence for transactions exceeding $1,000, even on registered crypto exchanges.

Kazakhstan tightens regulations on crypto exchanges

Crypto exchanges in Kazakhstan are only allowed to offer services if they operate within the financial center of Astana, which offers a special tax, currency and visa regime. As of press time, there are 10 regulated crypto exchanges in the country, including Binance and Bybit.

Recently, Kazakhstan increased its regulatory scrutiny of unlicensed crypto exchanges and froze $1.2 million in cryptocurrencies linked to nearly two dozen illegal over-the-counter platforms. As crypto.news previously reported, Kazakhstan is targeting not only small exchanges but also big players. 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.