Kazakhstan, a prominent player in the global cryptocurrency mining sector, has implemented stricter regulations on cryptocurrency activities throughout 2024.
according to government website, In 2024, 36 illegal cryptocurrency exchanges were closed. A total turnover of 60 billion tenge was destroyed. Furthermore, assets worth $4.8 million (about 2.5 billion tenge) were frozen and confiscated.
According to the government, “Such entities (illegal cryptocurrency exchanges) neither identify their customers nor identify suspicious transactions. Therefore, their services are often used by cyber fraudsters and drug traffickers.”
The website said: “As a result of joint work with the National Security Committee of the Ministry of Culture and Information, more than 3.5 thousand illegal online cryptocurrency exchange services were blocked.”
The country The financial watchdog said it will continue to work with international partners to strengthen control over illegal cryptocurrency transactions and combat their use for criminal purposes.
Kazakhstan banned 3,500 illegal cryptocurrency exchanges, including Coinbase in 2023, while only selected exchanges like Binance and Bybit received licenses to operate. 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 quickly became the second largest Bitcoin mining center in the world. It represents approximately 18% of Bitcoin’s total hash rate at its peak. Low electricity costs and surplus power from coal-fired power plants have attracted miners from all over the world.
To capitalize on the growing cryptocurrency industry, Kazakhstan has introduced a tax framework targeting miners.
However, implementation challenges persist due to non-compliance by many operators.
While the Central Asian country has been a haven for cryptocurrency miners due to its abundant energy resources and favorable policies, the recent crackdown signals a shift in its approach.
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Modernization of Central Asia
Kyrgyzstan recently announced an ambitious plan 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 an urgent necessity to integrate crypto assets into the country’s traditional financial system,” the Kyrgyz Ministry of Economy and Trade said.
According to a report published by the Times of Central Asia on January 7, 2025, public interest in cryptocurrencies is growing among individuals and companies in Kyrgyzstan. However, the market remains poorly regulated.
The Ministry believes that a licensed cryptocurrency bank will address these challenges, and increase transparency, trust and financial security.
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