Kazakhstan Cracks Down on Big Crypto Transactions

Kazakhstan Tightens Cryptocurrency Regulations: Mandatory Reporting for Transactions Over 5 Million Tenge Kazakhstan is stepping up its oversight of cryptocurrency transactions. The Deputy Chairman of the Agency for Financial Monitoring, Zheinis Elemesov, recently announced that all transactions involving digital assets exceeding 5 million tenge will now be subject to mandatory reporting. This move comes despite an existing ban on cryptocurrency trading within the country. Elemesov explained that digital assets are categorized as either secured or unsecured, with cryptocurrencies like Bitcoin and Ethereum falling into the latter category. While the government maintains its prohibition on general cryptocurrency trading, it does allow transactions to occur through licensed exchanges operating under the jurisdiction of the Astana International Financial Center (AIFC). He stated, "If a person wants to acquire a digital asset for investment purposes, they can register with a relevant exchange, open an account, and conduct the transaction." However, transactions exceeding 5 million tenge trigger mandatory financial monitoring, with exchanges required to relay this information to the agency. This measure aims to increase transparency and help combat potential financial crimes related to cryptocurrency. The reporting requirement applies specifically to buy, sell, and other transactions involving digital assets above the established threshold. The move reflects Kazakhstan's efforts to balance the potential benefits of digital assets with the need for robust regulatory oversight to prevent money laundering and other illegal activities. The AIFC's role in facilitating regulated cryptocurrency transactions suggests a measured approach to managing the risks associated with this rapidly evolving technology.