Financial Authorities in Kazakhstan Crack Down on Illegal Crypto Exchange

• Financial authorities in Kazakhstan have targeted at least five online platforms exchanging cryptocurrencies outside the law.
• Items such as documents, computer equipment, and cryptocurrency wallets were seized during searches in the northern part of the country.
• A pre-trial investigation is underway and access to crypto wallets at Binance has been restricted.

Kazakhstan’s Financial Monitoring Agency (FMA) recently took down a group involved in the illegal exchange of cryptocurrencies. In an operation in Kostanay region, searches were conducted at six locations and items such as documents, computer equipment, and cryptocurrency wallets were seized. The group behind the online exchangers had allegedly earned a large amount of income from their activities and two crypto wallets at Binance were discovered with a combined balance of $6,000 in digital assets.

The FMA has temporarily restricted access to these wallets and a pre-trial investigation is underway. Additionally, more than $200,000 worth of coins were found in wallets with other exchanges. The authority reminded that these types of activities are allowed only under the special legal regime of the Astana International Financial Center (AIFC).

The operation is part of an effort by the FMA to eliminate activities involving cryptocurrencies that are conducted outside of the law. The agency is also working to ensure that the public does not suffer financial losses due to illegal activities related to virtual assets. It is encouraging the public to report any such activities that they may become aware of.

The FMA is committed to protecting consumers, investors, and the financial sector from the risks associated with the illegal exchange of cryptocurrencies. It is also aiming to create a secure and transparent environment for the legal exchange of digital assets.