Kazakhstan to Ban Banks from Transferring Funds to Foreign Crypto Exchanges

The Agency for Regulation and Development of the Financial Market of Kazakhstan plans to prohibit banks from processing payments to crypto exchanges that are not participants of the Astana International Financial Centre. This is stated in the regulator’s resolution.

The restrictions will also affect transactions to electronic and online casinos. Operators will be unable to accept transfers from individuals under the age of 21, according to the document “On Amendments to Certain Regulatory Legal Acts of the Republic of Kazakhstan on the Regulation of Financial Organizations’ Activities”.

The draft is open for public discussion until October 30, 2024.

Additionally, there will be stricter controls on bank clients who possess more than five payment cards. They will face transaction limits—no more than three payments or transfers totaling up to 100,000 tenge per month if the transactions are directed to digital exchanges not registered with the Astana International Financial Centre.

If a client of a financial institution conducts a single transaction exceeding $1,000 with a crypto exchange that is a participant of the Astana International Financial Centre, the bank is required to conduct enhanced verification of the source of funds, scrutinize the financial operations, and prevent illegal transfers abroad, including to offshore accounts.

Earlier in October, Binance Kazakhstan received a full Digital Asset Trading Facility license from the Astana Financial Services Authority.