Kazakhstan Cracks Down on Illegal Crypto Operations
Kazakhstan is rapidly emerging as a cryptocurrency hub in Central Asia and has intensified enforcement against illicit digital asset activities.
According to a Cointelegraph report, an Astana Financial Services Authority (AFSA) spokesperson stated that 130 crypto platforms were shut down in 2025 due to involvement in money laundering.
Authorities confiscated $16.7 million in various cryptocurrencies linked to these crimes, signaling Kazakhstan’s commitment to a clean and compliant crypto ecosystem.
In a similar action, the agency seized $642,000 from illegal cryptocurrency mining operations last week, demonstrating that the crackdown targets both trading and mining.
Tougher Anti-Money Laundering Rules
Kazakhstan is implementing stricter anti-money laundering (AML) measures for money transfers to combat illicit financial activity.
AFM Deputy Chairman Kairat Bizhanov explained that banks must now verify the sender’s Individual Identification Number (IIN) for card top-ups exceeding 500,000 tenge. Previously, only the recipient’s IIN was required. Officials are exploring verification via mobile apps or SMS to ensure compliance.
These measures aim to make cryptocurrency transactions more transparent while ensuring legitimate users can safely access the ecosystem.
Increased Shutdowns of Crypto Exchanges
Most of the suspended platforms were not traditional centralized exchanges, but crypto exchangers or offices similar to currency exchange services.
An AFM spokesperson noted that the number of closures in 2025 already surpasses the 36 closures reported in 2024, highlighting Kazakhstan’s firm regulatory stance.
Currently, Bybit and WhiteBIT operate under AFSA licensing, with 20 crypto platforms legally offering services locally.
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Balancing Enforcement and Adoption
Kazakhstan is taking a dual approach by combining enforcement with promotion of digital assets. Initiatives include:
- Accepting regulatory fees in stablecoins like USDT.
- Launching one of Central Asia’s first spot Bitcoin funds.
- Planning a state-backed crypto reserve.
The AFM’s seizure of $16.7 million underscores strict enforcement, though it remains unclear if these funds will contribute to the country’s planned crypto reserve.
Kazakhstan demonstrates that regulation and adoption can coexist—cracking down on illegal activity while fostering a regulated digital asset space.
