With the surging adoption of cryptocurrencies and other blockchain-based products, dozens of new crypto-based exchanges have debuted in the wider market to serve more and more users.
In a recent development Kazakh regulator, AFM RK noted that it has blocked the operation of digital assets exchange operating without a proper license to operate in the region.
It is important to note that Kazakhstan was the nation that restricted the entry of Coinbase in the nation’s market, alleging the violation of digital assets laws in the nation.
The information that is at this point available also shows that Kazakhstan froze and seized assets from these platforms totaling USDT, a well-known stablecoin, valued at 4.8 million.
Following the incident the agency stated that “ AFM continues to work with international partners to enhance control over crypto transactions and combat their use for criminal purposes. Amendments to the legislation have also been developed, introducing liability for providers of digital assets in cases of money laundering violations. Checks on cryptocurrency transactions in financial institutions have been strengthened.”
Further noting “ AFM will continue to improve tools for effectively monitoring financial transactions to combat criminal schemes involving virtual assets.”
Kazakhstan is attracting more crypto-based companies and miners!
In the past few months, Kazakhstan has attracted major exchanges and companies in the region, with the growing adoption of cryptocurrencies in the nation. The nation is also known for its cheap electricity which became one of the primary factors that attracted dozens of new investors and millions in fresh funding.
Worth noting that some known centralized cryptocurrency exchanges seem to be closely exploring the potential to serve the crypto users in Kazakhstan.
Indeed, Kazakhstan is becoming a center for miners and businesses involved in cryptocurrency. The government of the nation has put laws into place to encourage cryptocurrency miners to establish operations there.
Kazakhstan currently produces around 6.17% of the world’s cryptocurrency mining, placing it among the top four nations in the world along with China, the US, and Russia.
The National Bank of Kazakhstan has shown its commitment to embrace digital assets by initiating a pilot program to investigate the creation of a central bank digital currency (CBDC).
Kazakhstan is a desirable location for cryptocurrency-based businesses and miners because of its beneficial business climate, reasonably priced power, and encouraging government laws.
The use of cryptocurrencies has grown significantly in Kazakhstan, rising by an astounding 39.1% in 2024. In terms of Bitcoin use, this increase has placed the nation fourth in Eastern Europe and Central Asia.
The nation’s advantageous business climate and the government’s encouraging policies are major factors in the rising interest in digital assets.
Most of these users are between the ages of 25 and 44, and a small majority are men. According to this demographic trend, young, tech-savvy people make up the majority of Kazakhstan’s cryptocurrency user population.
Kazakhstan is therefore well-positioned to maintain its increasing trend in the use of cryptocurrencies.