Authorities in Kazakhstan have shut down digital asset exchange ABS Change allegedly involved in illegal cryptocurrency trading. According to the country’s financial regulator (FMA), the exchange has no license and has been operating since 2021. Three Kazakh citizens are reportedly behind the deal.
In the raid on the capital’s exchange, officials confiscated $342,000 worth of cash and 7 million tenge (about $16,000). Authorities also found two wallets containing $23,000 worth of digital assets on Binance, the world’s largest cryptocurrency exchange. These wallets have now been temporarily restricted.
The FMA claims that ABS Change processed nearly $34 million in transactions through Binance. The regulator noted that ABS Change has been operating out of the Astana International Financial Center (AIFC), which is the only authorized cryptocurrency trading service provider in the country.
The FMA has been working to prevent “grey” commercial activity in Kazakhstan, including in the crypto space. It said the country’s shadow economy shrank to below 20 percent last year. In January, the regulator shut down several coin trading sites, and in February it seized nearly $188,000 worth of property, including digital assets, from a Russian citizen involved in the illicit trade.
Kazakhstan has become an attractive destination for cryptocurrency miners due to its cheap electricity after China cracked down on the cryptocurrency industry. Miners, however, have been blamed for causing power shortages in the country. The Nur-Sultan government has been taking steps to regulate the industry and the country’s growing crypto economy.
In February, a law was introduced to limit access to low-cost electricity for mining farms. The legislation also requires miners to sell most of their income on domestically registered exchanges and introduces a licensing system for miners.
The shutdown of ABS Change is part of Kazakhstan’s broader efforts to crack down on illicit crypto transactions and regulate the growing crypto industry.
