The Financial Monitoring Agency (FMA) of Kazakhstan has taken action against a group involved in illegal cryptocurrency trading. The group was operating through various websites such as kzobmen.com, 1wm.kz, kazobmen.ru, wm007.kz, and kz-exchange.com. During a operation in the Kostanay region, searches were conducted at six locations, and items were seized as evidence. The FMA confiscated laptops, cell phones, flash memory sticks, and financial documents.
Investigations revealed that the group had two crypto wallets on Binance, the world’s largest crypto exchange, with a combined balance of $6,000 in digital assets. Access to these wallets has been temporarily restricted. Additionally, over $200,000 worth of coins were found in wallets on other exchanges. The FMA is currently conducting a pre-trial investigation. The agency also reminded that these types of activities are only permitted under the special legal regime of the Astana International Financial Center (AIFC).
In order to operate legally, cryptocurrency companies must obtain regulatory approval and register with Kazakhstan’s financial hub. In October 2022, Binance was granted a license to provide crypto exchange and custody services. Earlier that month, Binance agreed to share information about crypto-related crime with authorities in Nur-Sultan.
The Kazakhstan government has been implementing measures to regulate the country’s crypto market, which has been growing since the country became a popular location for bitcoin mining following China’s crackdown on the industry in 2021.
