Kazakhstan, a leading player in the global cryptocurrency mining sector, has implemented stricter regulations on crypto activities throughout 2024.
According to the government website, in 2024, 36 illegal crypto exchanges were shut down. A total turnover of 60 billion tenge was destroyed. In addition, assets amounting to $4.8 million (approximately 2.5 billion tenge) were frozen and confiscated.
According to the government, “these entities (illegal crypto exchanges) do not identify their customers or identify suspicious transactions. This is why their services are often used by cybercriminals and drug traffickers.
“Through joint work with the National Security Committee and the Ministry of Culture and Information, more than 3,500 illegal online cryptocurrency exchange services have been blocked,” the website says.
The country The Financial Supervisory Agency said it will continue to work with international partners to strengthen control of illegal crypto transactions and combat their use for criminal purposes.
Kazakhstan blocked 3,500 illegal crypto exchanges, including Coinbase, in 2023, while only some exchanges like Binance and Bybit were granted operating licenses.https://t.co/m0xJKPBm48 pic.twitter.com/d8oCZwTXCV
– Telo News (@Telo_Official) January 8, 2025
Kazakhstan became a crypto mining hub after China banned crypto mining activities in 2021
Kazakhstan has quickly become the second largest Bitcoin mining hub in the world. It represents almost 18% of Bitcoin’s total hash rate at its peak. Its low electricity costs and excess energy from coal-fired power plants have attracted miners from around the world.
To take advantage of the growing crypto industry, Kazakhstan introduced a tax framework targeting miners.
However, enforcement problems persisted due to non-compliance with these rules by many operators.
While the Central Asian country is a haven for crypto miners due to its abundant energy resources and favorable policies, the recent crackdown signals a change in approach.
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Central Asia Update
Recently, Kyrgyzstan announced an ambitious plan to integrate cryptocurrencies into its financial ecosystem through licensed crypto banks.
“Given the rapid development of digital technologies and cryptocurrencies, the establishment of a crypto bank is an urgent necessity for the integration of crypto assets into the country’s traditional financial system,” the Ministry of Economy said and Trade of Kyrgyzstan.
According to a report from the Times of Central Asia on January 7, 2025, public interest in cryptocurrencies is increasing among individuals and businesses in Kyrgyzstan. However, the market remains poorly regulated.
The ministry believes that a licensed crypto bank will address these challenges, increasing transparency, trust and financial security.
Read more: This Week in Crypto Asia: Indonesia Crosses $30 Billion in Crypto Transactions in 2024
The article Kazakhstan Tightened Crypto Regulations In 2024, Shuts Down 36 Crypto Exchanges appeared first on 99Bitcoins.
