Kazakhstan is set to tighten its grip on cryptocurrency transactions with new regulations aimed at enhancing the oversight of bank transfers to foreign crypto exchanges. The proposed measures come as the country’s financial watchdog seeks to curb illegal activities and improve the security of its financial system.

The Agency of the Republic of Kazakhstan for Regulation and Development of Financial Market is proposing new regulations that would require local banks to automatically block transfers to overseas crypto exchanges that are not registered with the country’s financial center.

Limits on Unregistered Exchanges

Under the proposed rules, individuals will be restricted to transferring no more than 100,000 tenge (around $205) per month to unregistered crypto platforms. Additionally, banks will be required to conduct stricter checks for any transactions exceeding $1,000, even if the exchanges are registered.

Crypto exchanges in Kazakhstan are permitted to operate only if they are registered in the financial center in Astana, which offers special tax, currency, and visa regimes. There are currently 10 regulated crypto exchanges in the country, including major platforms like Binance and Bybit.

Regulatory Crackdown on Unlicensed Platforms

Kazakhstan has ramped up efforts to regulate unlicensed crypto activities. In recent actions, authorities froze $1.2 million linked to illegal over-the-counter platforms. The country has also banned major players such as Coinbase, accusing the exchange of violating Kazakhstan’s Law on Digital Assets, which prohibits the issuance and trading of uninsured digital assets.

The draft regulations reflect Kazakhstan’s continued push for tighter control over the rapidly expanding crypto market.