Kazakhstan’s Crackdown on Unauthorized Cryptocurrency Exchanges
Kazakhstan’s crackdown on unauthorized cryptocurrency exchanges has led to the shutdown of 130 platforms and the seizure of $16.7 million in digital currencies. This initiative was part of a broader effort by the financial authorities to combat money laundering. During a recent government briefing, Kairat Bizhanov, Deputy Chairman of the Financial Monitoring Agency, emphasized that current legislation permits crypto trading only through licensed platforms overseen by the Astana Financial Services Authority, which must also integrate with traditional banking channels, as reported by The Times of Central Asia.
Illegal Networks and Cash Transactions
In addition to the exchanges, authorities uncovered 81 illegal networks engaged in converting cryptocurrencies into cash, with total transactions amounting to over $43 million. Bizhanov warned that the cash-based financial landscape remains vulnerable, particularly due to criminals using bank cards registered with false identities to facilitate untraceable fund movement.
ATM Withdrawals and Stricter Controls
The total cash withdrawn from ATMs nationwide hit $24.1 billion during the assessed period, marking a $1.8 billion rise compared to the previous year. Recognizing the risks posed by ATMs, the government has instituted stricter control measures, allowing only users with over $913 loaded onto their payment cards to proceed with transactions after passing mandatory identity checks via government databases and mobile authentication.
Additionally, financial institutions must now maintain surveillance footage from their ATMs for a period of six months, while regulators are gearing up to require biometric methods such as facial recognition and fingerprint scanning for all transactions involving cash.
Expert Commentary on Privacy and Surveillance
When discussing these developments, cybercrime consultant David Sehyeon Baek commented that the initiatives represent a significant move towards enhancing the link between physical identity and financial accountability. He noted that while these methods could help reduce impersonation and ensure compliance, the potential risks of inappropriate surveillance practices must not be overlooked. Baek cautioned that the implementation of such systems should prioritize the balance between crime prevention and protecting citizens’ privacy rights, warning against the creation of permanent biometric databases that could be exploited. He concluded by stating that while biometric technology can enhance trust in digital transactions, it risks normalizing excessive financial monitoring without the right safeguards in place.
