Authorities in Kazakhstan have busted an illegal crypto trading platform, seizing over $350,000. The exchange is said to have processed almost $34 million in transactions through Binance wallets, two of which have been blocked during the ongoing investigation.
Digital asset exchange, making millions in turnover, closed in Kazakhstan
A platform illegally trading cryptocurrencies in Kazakhstan, ABS Change, has been identified and shut down, the country’s Financial Monitoring Agency (FMA) has announced. announced in Telegram. Three Kazakh citizens are accused of managing the stock exchange, which was operating without Permissive from 2021
During an operation in the country’s capital, law enforcement officials confiscated $342,000 and 7 million tenge (almost $16,000) in cash. The subject had other crypto assets worth $23,000 in two wallets Binancethe world’s largest crypto exchange, which were temporarily restricted, the statement said.
According to the FMA, ABS Change transferred a total of $34 million through Binance. The watchdog indicated that its operations were conducted out of the Astana International Financial Center (AIFC). Only exchanges that are residents of the financial center are authorized to provide crypto trading services in the Central Asian nation.
The FMA’s main focus is on preventing “grey” business activities, including those in the crypto space, and the agency said Kazakhstan’s shadow economy shrank to below 20% last year. In January, the regulator download several coin trading websites. In February, it seized nearly $188,000 worth of property, including digital assets, from a Russian national involved in these illegal operations.
After China’s crackdown on the industry, Kazakhstan attracted many cryptocurrency miners with its cheap electricity, but they were blamed for a growing energy shortage. Following the growth of the sector, the government in Nur-Sultan is taking steps to regulate it and the country’s growing crypto economy as a whole.
A law limiting mining farms’ access to cheap energy entered into force in Kazakhstan in February. The legislation introduces a licensing regime for miners and obliges them to sell most of their earnings on exchanges registered in the country.
Do you think Kazakhstan will continue to fight against unlicensed crypto trading platforms? Let us know in the comments section below.
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