Authorities in Kazakhstan have breached an illegal cryptocurrency trading platform, seizing more than $350,000. The exchange allegedly processed nearly $34 million in transactions through wallets on Binance, two of which have been blocked during the ongoing investigation.
A multi-million dollar digital asset exchange has closed down in Kazakhstan
Illegal cryptocurrency trading platform in Kazakhstan, ABS Change, identified and shut down by the country’s Financial Supervisory Agency (FMA) announce on Telegram. Three Kazakh citizens were accused of managing the stock exchange, which carried out its activities without A license Since 2021.
During an operation in the country’s capital, law enforcement officials seized $342,000 and 7 million tenge (almost $16,000) in cash. The entity had another $23,000 worth of crypto assets in two wallets binancethe world’s largest cryptocurrency exchange, which has been temporarily restricted, the statement elaborated.
According to FMA, ABS Change has transferred a total of $34 million through Binance. The agency indicated that its operations took place outside the Astana International Financial Center (AIFC). Only exchanges residing in the financial center are allowed to offer cryptocurrency trading services in the Central Asian country.
The FMA’s main focus has been on preventing “gray” businesses, including those in the crypto space, and the agency said Kazakhstan’s shadow economy shrank to less than 20% last year. In January, the regulator get down Many currency trading sites. In February, it seized nearly $188,000 in property, including digital assets, from a Russian citizen involved in these illegal operations.
After China’s crackdown on the industry, Kazakhstan has attracted many cryptocurrency miners with cheap electricity, but they have been blamed for widening the energy deficit. Since the sector’s expansion, the government in Nur-Sultan has taken steps to regulate it and the growing crypto economy in the country as a whole.
A law restricting mining farms’ access to low-cost energy He entered hard In Kazakhstan in February. The legislation introduces a licensing system for miners and requires them to sell the bulk of their proceeds on local registered exchanges.
Do you think Kazakhstan will continue to crack down on unlicensed cryptocurrency exchanges? Tell us in the comments section below.
Image credits: shutterstock, pixabay, wikicommons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services or companies. Bitcoin.com It does not provide investment, tax, legal or accounting advice. Neither the Company nor the author shall be liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.