Authorities in Kazakhstan have busted an illegal crypto trading platform and seized over $350,000. The exchange allegedly processed approximately $34 million in transactions through wallets on Binance, two of which were blocked during an ongoing investigation.
Digital asset exchange with millions in sales closed in Kazakhstan
The country’s Financial Monitoring Agency (FMA)telegraphedthat ABS Change, a platform that illegally traded cryptocurrencies in Kazakhstan, has been identified and closed Three Kazakhstanis are accused of operating the exchange, which operated without a license since 2021 The three Kazakhstanis are accused of operating the exchange, which has been operating without a license since 2021.
In an operation in the country’s capital, law enforcement confiscated $342,000 and 7 million tenge (about $16,000) in cash. The entity has another $23,000 worth of crypto assets in two wallets on Binance, the world’s largest crypto exchange, which are temporarily restricted, the statement detailed.
According to the FMA, ABS Change transferred a total of $34 million through Binance. The watchdog noted that its operations took place outside the Astana International Financial Center (AIFC). Only exchanges that are residents of the financial hub are allowed to offer crypto trading services in the Central Asian country.
The FMA focuses on preventing “gray” business activities involving the crypto space, and according to the agency, Kazakhstan’s shadow economy shrank to less than 20% last year In January, regulators shut down several coin trading sites In February, the regulators implicated these illegal activities They seized about $188,000 worth of property, including digital assets, from a Russian national.
After China cracked down on the industry, Kazakhstan attracted many cryptocurrency miners with cheap power but has been blamed for a growing power shortage. Since the expansion of this sector, the government in Nursultan has taken steps to regulate the sector and the country’s growing crypto economy as a whole.
In Kazakhstan, a law restricting mining sites’ access to low-cost electricity went into effect in February. The law imposes licensing requirements on mining operators and requires that the majority of their revenues be sold on exchanges registered in the country.
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