Kazakhstan Blocks Illegal Crypto Transactions Worth IDR 1.15 Trillion

Kazakhstan's efforts against illegal transactions using crypto. (Photo; Doc. AsiaCryptoToday)

JAKARTA - Kazakh authorities are taking firm steps in eradicating illegal crypto activity by blocking transactions worth US$75.4 million (around Rp1.15 trillion). The Financial Monitoring Agency of the Republic of Kazakhstan (AFM) announced this move through the Telegram platform, affirming the country's commitment to maintaining the integrity of its digital financial market amid the increasing threat of cyber crime.

AFM revealed that it has identified 18 criminal cases related to illegal crypto transactions and mining throughout 2024. Of these cases, six perpetrators have received sentences from the court on charges of "illegal buying and selling crypto assets," with total assets worth US$2.51 million (approximately Rp38.3 billion) that were confiscated.

One of the sticking cases involved a Russian citizen who was tried for running an illegal crypto exchange in Kazakhstan between 2020 and 2022. The man was sentenced to two years in prison, while property worth more than 121,600 US dollars (approximately Rp1.85 billion) obtained from his criminal activities was also confiscated.

Kazakhstan, now known as one of the largest crypto mining centers in the world, implements strict regulations on crypto activity in its region. Crypto exchanges operating in Kazakhstan are required to have official permits and can only operate from the Astana International Financial Center (AIFC). In addition, crypto miners must complete licensing protocols before they are allowed to connect their rigs to the power grid.

AFM emphasizes that advances in digital technology and informatics have prompted an increase in crime in this sector. To tackle this problem, AFM has formed a special unit equipped with the ability to monitor blockchain networks to identify and counter criminal activity in the information technology sector.

In addition to blocking illegal transactions, AFM also uncovered a crypto pyramid scheme that cost about 2,500 Kazakh citizens. In this case, the authorities managed to recover more than half a million US dollars (approximately IDR 7.6 billion) stolen in a scheme called Eolus. These funds were previously allocated to government projects such as information system maintenance and digitizing complaints, but were misused by criminals.

These decisive steps demonstrate Kazakhstan's efforts to ensure that the crypto industry develops within strict legal limits. With increasingly tightened surveillance and strong law enforcement, Kazakhstan seeks to protect its citizens from potential threats posed by illegal crypto activity.

In recent years, the country has become one of the main players in the global crypto industry, especially in terms of crypto mining, thanks to its low electricity costs and supporting government policies. However, rising illegal activity forces governments to tighten regulations and increase surveillance to ensure compliance with applicable laws.