Kazakhstan’s Monetary Monitoring Company (FMA) has taken a agency stance in opposition to unlicensed crypto exchanges. All through 2023, the FMA has actively shut down access to just about a thousand crypto exchanges working with out acceptable licensing.

Crackdown On Unlicensed Crypto Exchanges

The actions by the FMA have been disclosed in a press launch revealed on the Kazakh authorities’s web site. The company’s chairman, Ruslan Ostroumov, emphasised throughout a gathering of the Eurasian Group on Combating Cash Laundering in China, noting:

This yr, 980 unlawful cryptocurrency change platforms have been blocked within the nation. 9 investigations have been launched into unlawful change transactions value $36.7 million and laundering of prison proceeds. Preventive measures are being taken.

Kazakhstan’s Digital Property Regulation, enacted in February 2023, set the stage for these actions. The legislation prohibits creating, buying and selling, and working digital currencies and cryptocurrency exchanges and not using a nationwide license.

The Astana Worldwide Monetary Middle (AIFC) performs an important position on this regulatory framework, as it’s the physique accountable for offering preliminary authorization for digital currency-related operations inside the financial zone of Kazakhstan.

In June, the Astana Worldwide Monetary Middle granted Binance a permanent license, permitting it to supply providers to customers in Kazakhstan. These providers embrace change and conversion choices, deposit and withdrawal of fiat forex, and custody of digital forex belongings.

This improvement means that whereas the regulatory authorities in Kazakhstan should not inherently against cryptocurrency exchanges, they’re “firmly” in opposition to the operation of unlicensed digital asset exchanges inside the area.

Coinbase Impacted By The Blockade

Coinbase, one of many world’s main digital forex exchanges, was impacted by Kazakhstan’s regulatory measures. The Ministry of Tradition and Data of Kazakhstan announced the blocking of Coinbase earlier last month.

This choice responded to the change’s alleged non-compliance with Kazakhstan’s digital belongings laws and related fraudulent actions.

Native media sources reported that the Ministry’s choice to dam Coinbase stemmed from the change’s engagement in crypto buying and selling actions, contradicting particular provisions of Kazakhstan’s Regulation on Digital Property.

The request to dam entry to Coinbase reportedly originated from the Ministry of Digital Improvement, Innovation, and Aerospace Trade, citing the change’s operations as non-compliant with nationwide laws.

The enforcement in opposition to Coinbase and different platforms was carried out beneath the Communications Act of Kazakhstan. This laws forces web service suppliers to limit entry to websites internet hosting “prohibited” content material, which, on this case, pertains to unregistered and non-compliant digital forex exchanges.

Whatever the crackdown on crypto, the worldwide crypto market has continued to specific bullishness. Notably, over the previous 24 hours, the general market worth has surged by almost 3%, presently at a valuation of $1.7 trillion.