Kazakhstan closed 36 illegal cryptocurrency exchanges in 2024, seizing millions of dollars in assets while preparing to launch the digital tenge.
In 2024, Kazakhstan launched a vigorous campaign targeting unlicensed cryptocurrency exchanges, shutting down 36 platforms and seizing assets worth 112 million USD. According to the Financial Monitoring Agency (FMA) of Kazakhstan, this figure represents a sharp decline from 980 exchanges blocked in 2023, reflecting the government's efforts to restore order in the cryptocurrency market.
The closed exchanges are said to be linked to money laundering activities, non-compliance with customer identity verification (KYC) regulations, and failure to detect suspicious transactions. The total trading volume through these platforms is estimated to reach 60 billion tenge (approximately 112.8 million USD), of which authorities have seized assets worth 4.8 million USD.
Not only focusing on dismantling illegal exchanges, Kazakhstan is also strengthening anti-money laundering measures and establishing a clear legal framework for cryptocurrency. In 2023, the FMA conducted 9 investigations related to illegal trading and money laundering activities, processing over 3,500 unlicensed exchanges.
With strong measures, Kazakhstan is promoting the development of a central bank digital currency (CBDC) – the digital tenge, expected to launch in 2025. This is a strategic step to enhance transparency, improve efficiency in financial transactions, and integrate into global payment platforms such as Apple Pay and Samsung Pay, expanding the reach to international users.
Kazakhstan is also collaborating with international organizations and major payment corporations such as Visa and Mastercard to ensure that the CBDC is smoothly integrated into the current financial system.