Kazakhstan Seizes $17M in Crypto, Shuts Down 130 Illegal Exchanges

TLDR

• Kazakhstan shut down 130 illegal cryptocurrency exchanges operating without licenses in 2025.
• Authorities seized digital assets worth $16.7 million during the crackdown on unregistered trading platforms.
• The Financial Monitoring Agency revealed that these platforms were involved in laundering criminal proceeds.
• Officials identified 81 criminal groups responsible for over $44 million in illegal financial transactions.
• Kazakhstan introduced stricter banking rules requiring identity verification for large debit transactions.

Kazakhstan has dismantled 130 unlicensed cryptocurrency exchanges this year, confiscating virtual assets valued at $16.7 million. The Financial Monitoring Agency (AFM) confirmed the crackdown targeted crypto platforms involved in laundering illicit funds. Authorities also revealed that they are enforcing stricter banking regulations to combat the rising financial crimes linked to cryptocurrency trading.

Illegal Exchanges Shut Down Across Kazakhstan

Kazakhstan continues its effort to regulate the cryptocurrency market and shut down non-compliant operators. This year, the AFM terminated 130 crypto exchanges operating without a license. These platforms reportedly participated in illegal financial operations, including money laundering.

AFM Deputy Chairman Kairat Bizhanov confirmed the seizure of digital assets worth $16.7 million. He stated, “The activities of 130 unlicensed crypto exchanges involved in laundering criminal proceeds have been terminated this year.” The crackdown follows months of monitoring and investigations led by law enforcement and financial watchdogs.

Furthermore, authorities aim to eliminate cash-out schemes and suspicious transactions. As part of the effort, the agency has introduced tighter banking oversight and identification requirements. The rules target anonymous transactions and bank cards used by money mules.

Financial Crimes Increase Despite Regulatory Measures

Since early 2025, Kazakhstan has identified 81 criminal groups associated with illicit cryptocurrency and cash-out schemes. These groups processed over 24 billion tenge, exceeding $44 million in turnover. The figure is nearly a trillion tenge more than last year, according to the AFM.

Bizhanov noted that criminals often exploit unregistered bank cards and anonymous digital wallets. He emphasized that the most significant risks stem from untraceable transfers involving unknown senders and receivers. This trend has led to an expansion of biometric and mobile banking verification measures.

Kazakhstan now requires individual identification numbers for debit top-ups exceeding 500,000 tenge. Additionally, banks are required to store ATM camera footage for a minimum of 180 days. These steps aim to increase transparency and prevent fraudulent activities within the financial system.

Licensed Exchanges Remain Legal Under AFSA Rules

Only crypto exchanges licensed by the Astana Financial Services Authority (AFSA) are permitted to operate in Kazakhstan. The AFSA operates under the Astana International Financial Center (AIFC) and supervises all legal crypto activities. Platforms outside its jurisdiction remain illegal until further regulatory updates.

Despite shutting down illegal operations, Kazakhstan plans to expand its licensing framework. The upcoming changes may allow more platforms to register legally, even outside the AIFC. These updates aim to grow the local crypto market while ensuring compliance and safety.

Kazakhstan has earned over $31 million in taxes from crypto mining in the past three years. The country aims to establish itself as a leading cryptocurrency hub in Eurasia. However, strict laws and enforcement remain central to its digital asset strategy.

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