Banks in Kazakhstan Ban Transfers to Foreign Crypto Exchanges. What Does It Mean for Users?

Banks in Kazakhstan are shutting down money transfers to foreign crypto exchanges, signaling a significant shift in the country’s approach to regulating cryptocurrencies. The Agency for Regulation and Development of Financial Markets (ARDFM) has announced new rules that aim to block transactions directed to crypto platforms not registered within the Astana International Financial Center (AIFC).

Let’s break down what’s happening and what it means for users.

What’s Changing?

According to the draft regulation, which is open for public discussion until October 30, banks will automatically deny transfers to all foreign crypto exchanges unless they operate within the AIFC. This means users trying to fund their accounts on major global exchanges—like Binance or Coinbase—are out of luck unless these platforms align with Kazakhstan’s new licensing requirements.

And it’s not just crypto in the spotlight. The proposed rules also restrict payments to online casinos and tighten controls on users with multiple bank cards. If you hold more than five active cards (down from the previous limit of ten), your transactions may now be limited too.

For crypto enthusiasts still determined to use unregistered exchanges, a strict limit is in place: no more than three transactions per month with a maximum total value of 100,000 tenge (around $210 USD).

More Scrutiny on Large Transactions

Planning to transfer more than $1,000 to a licensed exchange within the AIFC? Be prepared for enhanced monitoring. Banks will now require a detailed check on the origin of your funds, as well as close oversight of future operations.

AIFC: The Only Safe Haven for Crypto in Kazakhstan

Kazakhstan’s authorities are channeling crypto operations into the AIFC—a special economic zone designed to attract investments with tax incentives and simplified visa rules. Only exchanges with AIFC licenses can operate legally within the country.

Currently, ten exchanges have gained approval within the AIFC, including:

• Onyx Trade Ltd.

• Neyco Ltd.

• Swiftex.io Limited

• Bigone Investment Ltd.

• ATAIX Eurasia Ltd.

• Bybit Limited

If you’re serious about crypto, the message is clear: stick to these platforms, or be ready for financial roadblocks.

Cracking Down on Illegal Operations

In 2023 alone, Kazakhstan’s Financial Monitoring Agency blocked 980 illegal crypto exchanges, demonstrating that the country is determined to clean up its crypto landscape. Even global names like Coinbase felt the sting.

What Does This Mean for Users?

The new regulations mark a turning point for Kazakhstan’s crypto community. Users will need to rethink their strategies, opting for local licensed exchanges or finding alternative financial routes. While the government claims the restrictions will improve security and protect users from fraud, many crypto enthusiasts are already concerned about reduced freedom and fewer investment opportunities.

If you’re still planning to dive into the crypto world from Kazakhstan, it’s time to adapt. The AIFC may just become your new best friend.