Kazakhstan Shuts Down 36 Illegal Crypto Exchanges in 2024 Crackdown
Kazakhstan continues to flex its muscles in the fight against illegal cryptocurrency dealings, with the Financial Monitoring Agency shutting down 36 unauthorized exchanges so far in 2024. The move represents one of the most important moves in the Central Asian country’s Anti-Money Laundering campaign, as it targets online platforms that provide illegal fiat-for-crypto and crypto-for-fiat services, widely used by cybercriminals and drug dealers.
The FMA said that these illegal exchanges, with a total turnover of 60 billion tenge ($112.8 million), were dismantled, and assets worth 2.5 billion tenge ($4.8 million) were seized. According to officials, these platforms’ failure to verify clients and detect suspicious transactions makes them critical nodes for laundering money and supporting other illicit activities.
Seized Assets and Broader Impact
Authorities said the closures were part of the larger effort to combat money laundering. The enforcement is also complementary to the government’s efforts to develop a clear and regulated environment for virtual currencies. In 2023, the FMA had shut down 980 illegal platforms, which means the 96% decrease in 2024 only reflects a reduction in active unlicensed exchanges.
Working in tandem with the National Security Committee and other relevant agencies, Kazakhstan has so far shuttered more than 3,500 unauthorized exchanges. Two among them have been identified as pyramid schemes. A case against the former saw the court return $545,000-worth of investments to the victims while freezing another $120,000 in order to forestall the perpetration of scams on yet more gullible victims.
Toward a Digital Tenge
While fighting illicit activities, Kazakhstan is also making progress in launching its central bank digital currency, the digital tenge. Development started in February 2023, with a partial rollout scheduled for 2025. The digital tenge is designed to be used seamlessly around the world, integrated with Visa, Mastercard, and payment platforms such as Apple Pay and Samsung Pay.
The head of the National Payment Corporation of Kazakhstan, Binur Zhalenov, stated that such a currency would make settlements in general more efficient: “It lets you pay with a digital tenge from anywhere in the world.
Kazakhstan’s proactive dual approach-clamping down on illegal crypto activities while advancing digital innovation-illustrates its commitment to fostering a secure, regulated, and forward-looking financial ecosystem. As the country is getting closer to the digital tenge, it cements its leading position in modernizing digital finance.
