Kazakhstan Blocks 1,100 Unlicensed Crypto Exchanges in Regulatory Crackdown

Source: Cryptonews Original Title: Kazakhstan blocks 1,100 unlicensed crypto exchanges in crackdown Original Link: Financial authorities in Kazakhstan have blocked access to more than 1,100 online platforms offering cryptocurrency exchange services over the past year.

The restrictions come as the Central Asian nation works to regulate and expand its legal cryptocurrency market, with stated ambitions to establish itself as a regional digital asset hub.

Kazakhstan’s Regulatory Framework

The blocking of hundreds of unauthorized cryptocurrency exchanges represents part of Kazakhstan’s broader regulatory framework aimed at controlling the digital asset sector within its borders.

Kazakhstan has emerged as a significant player in the global cryptocurrency mining industry in recent years, particularly following China’s crackdown on crypto mining operations in 2021, which prompted many mining companies to relocate.

The country’s regulatory approach appears focused on distinguishing between licensed, legal cryptocurrency operations and unauthorized platforms operating without government approval.

Enforcement Mechanisms

The regulatory measures reflect a growing trend among governments worldwide to establish formal oversight of cryptocurrency markets while attempting to prevent unregulated trading activities. The move fits a broader framework that freezes funds, shuts illegal OTC desks, and channels trading into licensed venues within the Astana financial center.

Official goals include curbing money laundering and consumer risk while building a regulated digital asset hub and exploring a national crypto reserve.