Kazakhstan Targets 980 Unlicensed Exchanges in EAG Spotlight

Kazakhstan made its mark at the 39th Eurasian Group (EAG) Plenary Week in Sanya, China, by actively engaging in discussions on tackling virtual asset crime. The Kazakh delegation showcased their innovative solutions and strategies to fellow member states, demonstrating their commitment to international cooperation and a safer digital asset landscape.

Virtual Assets and Criminal Activity

The fast growth of virtual assets like Bitcoin, combined with the fact that they’re not controlled by any government and users can remain anonymous, has made it easy for criminals to use them. Criminals are increasingly using virtual assets to launder money and finance terrorism, which makes them a big threat to the safety and stability of our financial systems and the world.

Kazakhstan’s Response: A Multifaceted Approach

After recognizing these challenges, Kazakhstan has taken a multi-pronged approach to combating virtual asset crime. The country has implemented a comprehensive legal framework to regulate the circulation of digital assets, ensuring transparency and accountability within the sector. Notably, the Financial Monitoring Agency of Kazakhstan (AFMRK) has played a crucial role in enforcing these regulations and taking proactive measures against illegal activities.

Targeting illegal crypto exchanges

At the EAG seminar, Ruslan Ostroumov, Head of the Department at AFMRK, presented Kazakhstan’s latest initiatives in tackling virtual asset crime. One key achievement highlighted was the successful blocking of 980 illegal cryptocurrency exchange platforms operating within the country. Whereas exchanges like, Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit and Xignal&MT got permission to operate in Kazakhstan.

Millions of Dollars Seized

Furthermore, the AFMRK has launched nine investigations into cases involving illegal exchange transactions worth a staggering $36.7 million, along with suspected money laundering activities. These ongoing investigations highlight the effectiveness of Kazakhstan’s law enforcement efforts in identifying and prosecuting criminal networks operating in the virtual asset ecosystem.

Preventive Measures

Beyond enforcement, Kazakhstan emphasizes the importance of preventive measures in the fight against virtual asset crime. AFMRK is actively implementing educational programs and awareness campaigns to educate the public about the risks associated with virtual assets and empower them to make informed decisions.

To conclude, The EAG seminar provided a vital platform for fostering dialogue and collaboration between countries on the issue of virtual asset crime. Kazakhstan’s leadership in this crucial area underscores its dedication to creating a safer and more secure financial environment for all.