Kazakhstan’s Financial Monitoring Agency (AFM) has taken decisive action against illegal cryptocurrency activities, freezing $1.2 million in digital assets and shutting down 19 unlicensed over-the-counter (OTC) crypto platforms. These efforts form part of a broader campaign to curb money laundering and prevent the financing of terrorism.

Crackdown on Illegal Crypto Activity

The AFM’s focus includes three key areas: illegal crypto mining, unlicensed exchanges, and unlawful digital asset transactions. Since the start of 2024, authorities have shut down nine illegal crypto mining operations and confiscated nearly 4,000 mining rigs. This illustrates Kazakhstan’s growing determination to bring its crypto industry in line with legal standards.

In addition to freezing millions of dollars in assets, authorities have blocked 5,500 unlicensed online exchangers. The total turnover of these illegal OTC platforms reportedly exceeded $60 million. The crackdown is aimed not only at smaller players in the market but also at major international platforms.

Global Players Under Scrutiny

In December 2023, Kazakhstan made headlines by banning Coinbase, the largest cryptocurrency exchange in the U.S., over alleged violations of the country’s crypto regulations. The ban was imposed after the Ministry of Digital Development flagged concerns regarding Coinbase’s trading activities, which were found to contravene Kazakhstan’s Law on Digital Assets. This law prohibits the circulation of uninsured digital assets and the operation of exchanges trading such assets.

Kazakhstan’s Regulatory Future

As part of its efforts to regulate the digital asset space, Kazakhstan is setting a strong precedent by taking swift and decisive action against illegal activities. With regulatory scrutiny increasing, businesses operating in the country must ensure compliance with local laws to avoid penalties or shutdowns.

This latest move signals a broader shift in Kazakhstan’s approach to cryptocurrency as it seeks to balance innovation with law enforcement.