Kazakhstan registers 1,000 criminal cases involving cryptocurrency
Kazakhstan has reported over 1,000 cryptocurrency-related criminal cases within two years, resulting in financial damages exceeding $15 million. The majority of cases involve fraud (60%), illegal activities by exchanges (25%), and money laundering (15%). To combat these crimes, Kazakhstan has implemented measures like establishing an anti-fraud center, blocking suspicious websites and calls, and enhancing investigative skills. The country, aspiring to become a regional crypto hub, has also witnessed growth in its shadow crypto economy and illicit transactions. Recent crackdowns include dismantling illegal mining operations, seizing millions in digital assets from scams, and targeting unauthorized exchanges. Officials continue addressing crypto-related risks while promoting legal crypto operations and expanding the market.
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Kazakhstan Investigates Over a Thousand Crypto Cases
Law enforcement authorities in Kazakhstan have opened over 1,000 investigations into cases involving cryptocurrency in just two years. The financial damages caused to victims exceed $15 million, according to the country’s interior ministry, which aspires to become a regional crypto hub.
Breakdown of Crypto-Related Crimes
More than 1,000 criminal cases related to cryptocurrency operations were registered over the past two years. Deputy Minister of Internal Affairs Sanzhar Adilov revealed at a forum that:
- 60% of these cases involve fraud.
- 25% involve illegal activities by cryptocurrency exchanges.
- 15% are related to money laundering through digital assets.
Adilov stated the financial losses incurred by both individuals and organizations exceeded 8 billion Kazakhstani tenge (over $15 million).
Kazakhstan's Anti-Cybercrime Measures
Adilov highlighted a systemic response to combat rising cybercrime in cryptocurrencies. Measures include:
- Establishing a special anti-fraud center for monitoring suspicious websites and phone numbers.
- Blocking over 26,000 fraud-related sites and 64 million suspicious calls since the beginning of the year.
These efforts aim to mitigate new risks introduced by the digitalization of the economy.
Kazakhstan's Vision as a Crypto Hub
Kazakhstan emerged as a global player in the crypto mining space after attracting miners following China's ban on mining activities. Despite challenges like spiking electricity demand, the government took steps to capitalize on the boom:
- Licenses were granted to exchanges within the Astana International Financial Center (AIFC).
- Pilot programs for crypto cards and coin payments in a "Crypto City" were launched.
- The government prepared to legalize crypto trading beyond the financial hub.
Kazakhstan’s ambition is to establish itself as a central crypto market player in the region.
Crackdown on Illicit Crypto Activities
Kazakhstan is resolute in its efforts to curb the shadow crypto economy and illicit transactions. In 2023 alone, authorities undertook significant actions:
- $16 million in damages was linked to illegal crypto mining operations.
- $10 million in digital assets were seized from a crypto pyramid scheme spanning Russia and Belarus.
- A dark web exchange, allegedly the largest crypto money laundering service in the former Soviet space, was dismantled.
- Confiscation of $17 million worth of cryptocurrency from 130 illegal exchanges occurred early in the year.
These actions underscore Kazakhstan’s zero-tolerance stance toward illicit practices.
Challenges of Crypto Regulations
In a recent revelation, Kazakhstan’s central bank disclosed that $15 billion was transferred out of the country using cryptocurrencies, attributing this to insufficient regulations. This issue underscores the need for improving legislative frameworks to balance economic opportunities with addressing criminal risks.