Kazakhstan, a leading country in the global cryptocurrency mining sector, has implemented stricter regulations on cryptocurrency activity throughout 2024.
According to government website, In 2024, 36 illegal cryptocurrency exchanges were shut down. A total turnover of 60 billion Tenge was destroyed. Additionally, assets worth $4.8 million (approximately 2.5 billion tenge) were frozen and confiscated.
According to the government, “These entities (illegal cryptocurrency exchanges) do not identify customers and do not identify suspicious transactions. Therefore, these services are frequently used by cyber fraudsters and drug traffickers.”
“As a result of joint work with the National Security Commission and the Ministry of Culture, Sports and Tourism, more than 3,500 illegal online cryptocurrency exchanges have been blocked,” the website said.
of that country The Financial Monitoring Agency said it would continue to work with international partners to strengthen controls on illicit cryptocurrency trading and prevent their use for criminal purposes.
Kazakhstan blocked 3,500 illegal cryptocurrency exchanges, including Coinbase, in 2023, with only a few exchanges, such as Binance and Bybit, securing operating licenses. https://t.co/m0xJKPBm48 pic.twitter.com/d8oCZwTXCV
— Telo News (@Telo_Official) January 8, 2025
Kazakhstan has emerged as a cryptocurrency mining hub following China’s ban on cryptocurrency mining activities in 2021.
Kazakhstan has quickly become the second largest Bitcoin mining hub in the world. This accounts for nearly 18% of Bitcoin’s peak hash rate. Low electricity costs and surplus energy from coal-fired power plants have attracted miners from around the world.
To capitalize on the growing cryptocurrency industry, Kazakhstan has introduced a tax system targeting miners.
However, enforcement problems persisted due to non-compliance by many operators.
The Central Asian country has been a haven for cryptocurrency miners due to its abundant energy resources and friendly policies, but the latest crackdown marks a change in approach.
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Central Asia Update
Recently, Kyrgyzstan announced ambitious plans to integrate cryptocurrencies into its financial ecosystem through licensed cryptocurrency banks.
“Given the rapid development of digital technologies and cryptocurrencies, the establishment of a cryptocurrency bank is urgently needed to integrate cryptocurrency assets into the country’s traditional financial system,” the Kyrgyz Ministry of Economy and Commerce said.
According to a January 7, 2025 Times of Central Asia report, public interest in cryptocurrencies is growing among individuals and businesses in Kyrgyzstan. However, the market is still poorly regulated.
The Ministry believes that licensed cryptocurrency banks will address these issues and improve transparency, trust, and financial security.
Read more: This Week in Crypto Asia: Indonesia to Surpass $30 Billion in Cryptocurrency Transactions in 2024
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