By Kimberly Crain
The regulators in Kazakhstan reigning the crypto space have closed the operation of a crypto trading platform ABS Change for unethical business practices. The probing team argued that the company engaged in illegal crypto trading activities that violated the law. The proprietors of ABS are charged with operating the exchange without complying with the Kazakhstan licensing requirements.
Additionally, the investigators revealed that the firm had recently wired $34 million through the Binance wallets. Following the legal process, the regulators suspended the operation of the wallets temporarily to proceed with investigations.
Tougher Crypto Regulations in Kazakhstan
On March 10, the Kazakhstani Financial Monitoring Agency (FMA) revealed plans to close the operation of ABS Change for engaging in illegal business practices. The FMA argued that the crypto firm operated from 2021 without acquiring a business permit.
The Telegram update revealed that the FMA raided the ABS offices situated in Astan to probe the matter. Per the report, the probing team seized $342,000 and substantial amounts of Kazakhstani Tenge, translating to $16000. The regulators have suspended the operation of two digital wallets owned by ABS that holds over $23000 cryptos.
Also read:Based on the investigators’ findings, ABS is accused of funneling over $34 million through the largest crypto exchange platform per market capitalization, Binance. Also, the FMA official reported that most transactions undertaken by ABS were outside the Kazakhstani capital center. Following this, the regulators considered the ABS actions illegal and were against the crypto regulations in the region.
Role of Financial Monitoring Agency in Kazakhstan
The uncertainties in the crypto space have prompted the FMA to adopt stringent regulations for crypto firms in the country. A report from Kazakhstan analysts revealed that the country’s economy dipped by 20% in 2022 due to the after-effect of global macroeconomic pressures. Recently, the FMA officials halted the issuance of several coins listed on the Kazakhstani crypto exchanges. Later, the regulators confiscated $188000 crypto assets traded by a Russian investor illegally.
Besides the FMA’s strict legal action, the country has created friendly business environments for crypto firms to blossom. Unlike other developing and developed countries, Kazakhstan’s cheaper energy supply attracts new foreign miners to the region.
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