"Illegal investing platforms are advertised by Cryptocoaches; man calls for mandatory licensing of investments"
Kazakhstan Tightens Cryptocurrency Regulations
In a bid to establish a regulated and credible cryptocurrency market, Kazakhstan has taken several significant steps to control the risks associated with illicit crypto activities and unregulated promotion.
Unlicensed Exchanges Under Scrutiny
Over 4.2 billion tenge worth of cryptocurrency transactions have passed through the accounts of ten second-tier banks, with almost non-existent internal control mechanisms. Despite a legislative ban, unlicensed cryptocurrency exchanges continue to operate and are accessible to users through various channels such as App Store, Play Market, social media, and mass events. In response, Kazakhstan has imposed administrative and criminal penalties against unauthorized or "gray market" transactions, and has already banned and blocked thousands of unlicensed crypto websites and platforms. Proposals to intensify penalties include fines for using or facilitating trading on such platforms.
State-Managed Crypto Reserve
Kazakhstan plans to incorporate confiscated digital assets obtained from illicit activities into a state-managed national crypto reserve. This reserve will also include state-mined cryptocurrencies, centralized under the National Bank with an emphasis on transparency, risk mitigation, and sustainability. The government is creating secure infrastructure for this purpose, positioning confiscated crypto as a deterrent and source of state funds.
Advertising Restrictions
The regulatory framework is tightening advertising restrictions related to cryptocurrencies to better control market activities and prevent unauthorized promotion. The National Bank is actively seeking to limit crypto-related advertisements, controlling how the crypto market is portrayed and reducing potentially misleading or excessive promotion.
Addressing the Issue of "Cryptocoaches" and Bloggers
The activities of unlicensed "cryptocoaches" and bloggers, who mislead citizens with promises of profits, are concerning. The government is addressing this issue by implementing stricter regulations to prevent unauthorized promotion and misleading information.
Mining Regulations
Kazakhstan's current cryptocurrency regulations focus on strict control through licensed platforms, primarily within the Astana International Financial Centre (AIFC). Miners must sell 75% of their assets through these licensed exchanges. As of now, over 84 licenses and over 400,000 mining registrations have been issued.
Addressing Key Issues
The storage of seized cryptocurrencies in the context of criminal cases is currently unregulated, creating a risk of loss or theft. Moreover, the mass involvement of youth in the grey cryptocurrency market through the activities of these unlicensed individuals is a key issue. Deputy Olzhas Kuspakov of the Respublica faction has submitted a deputy inquiry to the National Bank, Prosecutor General, and Financial Market Regulation Agency, requesting stricter control over the cryptocurrency market.
In summary, these combined measures position Kazakhstan as striving to build a regulated, credible crypto market and to control risks related to illicit crypto activities and unregulated promotion. Deputy Kuspakov has expressed that this level of illegal cryptocurrency turnover is unacceptable.
- In an effort to combat illicit activities and unregulated promotion, Kazakhstan is imposing penalties on unauthorized cryptocurrency exchanges and is proposing fines for using or facilitating trading on such platforms, as part of its bid to establish a credible cryptocurrency market.
- Addressing the issue of deceptive practices, the government is implementing stricter regulations to prevent unauthorized promotion and misleading information by unlicensed "cryptocoaches" and bloggers, who promise citizens profits in the crypto market.
