Kazakh authorities have blocked more than 3,500 illegal cryptocurrency exchanges in a move to address money laundering concerns.

According to another press release From AFM RK, the country's financial watchdog, the regulatory body liquidated 36 illegal cryptocurrency platforms in 2024 with total sales of 60 billion tenge (about $112.84 million) and blocked access to more than 3,500 unregistered cryptocurrency exchanges in cooperation with the Commission National security. And the Ministry of Culture and Information.

Pointing to an uptick in money laundering activities, the regulator said these exchanges lacked anti-money laundering measures and did not enforce proper KYC protocols, making them a preferred channel for criminals, such as fraudsters and drug dealers.

As part of the crackdown, the regulator also seized US$4.8 million from these platforms.

Among other efforts, the government was able to dismantle two cryptocurrency pyramid schemes and recover $545,000 while freezing an additional $120,000 associated with these fraudulent operations.

AFM RK will continue to do so cooperation The statement indicated that it will cooperate with its international partners and improve tools to enhance transaction monitoring to combat cryptocurrency crimes, adding that new regulations are being introduced to hold digital asset providers accountable for non-compliance with anti-money laundering laws.

The latest efforts are part of a broader campaign against illicit cryptocurrency activities in Kazakhstan. Ditto I mentioned By crypto.news The country will also focus on mitigating illegal cryptocurrency mining alongside its ongoing efforts to target unlicensed exchanges and illegal transactions involving cryptocurrencies, AFM President Zhanat Elimanov said in an October 2024 statement.

Kazakhstan has become a major market for cryptocurrencies, especially since then China's crackdown Cryptocurrency mining and use of cryptocurrencies in 2021 has led to an exodus of miners and cryptocurrency-related businesses to that area.

For every December a report From RISE Research and Freedom Horizons The booming cryptocurrency market has seen tax revenues generated by the sector rise, while the number of local residents who own digital assets will also double in 2024.

However, the country has maintained a strict regulatory environment and blocked access to foreign cryptocurrency platforms that it deems have violated its digital asset laws. For example, it was US-based Coinbase BlueCKid In December 2023 to offer unsecured cryptocurrencies.

However, this did not deter other players like Binance and Bybitwho applied and received initial approval to provide trading and custody services within the Kazakh borders.