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In a decisive move against illegal financial activity, Kazakhstan shuts down RAKS crypto exchange after authorities discovered its involvement in laundering vast sums of criminal funds. The Financial Monitoring Agency (FMA) reported that the exchange facilitated illicit transactions worth over $224 million, directly tied to darknet marketplaces and criminal networks.
This crackdown underscores Kazakhstan’s intensifying efforts to regulate its crypto sector, safeguard legitimate markets, and prevent money laundering on a global scale.
Kazakhstan Shuts Down RAKS Crypto Exchange Amid AML Push
The RAKS exchange investigation revealed that the platform was not licensed under Kazakhstan’s digital asset regulations, making its operations illegal. Authorities found that funds processed through the exchange were funneled into criminal schemes, including darknet activities. Reports suggest as many as 5 million darknet crypto users may have been indirectly impacted by this action.
The Kazakhstan crypto crackdown is not new — regulators previously closed dozens of unlicensed exchanges in 2024, freezing millions in suspicious funds. However, the RAKS case is one of the most high-profile due to the scale of frozen assets and its ties to global illicit finance.
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Officials emphasized that shutting down RAKS sends a strong message about Kazakhstan’s commitment to strengthening compliance and financial transparency.
Why the Crackdown Matters for Crypto
The FMA’s actions align with international standards on anti-money laundering (AML) and combating the financing of terrorism (CFT). By targeting platforms like RAKS, Kazakhstan is:
- Protecting investors by removing unregulated and unsafe trading venues.
- Enhancing credibility of its regulated crypto sector.
- Deterring illicit finance, particularly in crypto money laundering schemes tied to darknet markets.
This decisive enforcement action may push other crypto exchanges in Kazakhstan to ensure licensing and transparency. It also highlights a broader regional trend where governments are tightening oversight on crypto-related businesses.
Also Read: Kazakhstan’s Bold Move: Investing National Reserves in Bitcoin and Crypto
FAQs
Why did Kazakhstan shut down RAKS crypto exchange?
Authorities found the exchange was operating without a license and facilitating over $224M in criminal fund transfers.
How many users were affected by the RAKS shutdown?
Reports suggest the action may have indirectly impacted up to 5 million darknet crypto users.
What does this mean for Kazakhstan’s crypto sector?
It signals stricter enforcement, encouraging exchanges to comply with licensing and AML regulations.
Is crypto trading legal in Kazakhstan?
Yes, but only through licensed platforms under the country’s digital asset laws.
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