Kazakhstan Crypto: Swift Crackdown Halts 130 Illicit Platforms, Seizes $17M

Kazakhstan, a nation positioning itself as a key Central Asian cryptocurrency hub, recently made headlines with a significant enforcement action. Authorities have shut down 130 crypto platforms this year. This decisive move highlights the country’s commitment to robust crypto regulation. Furthermore, it demonstrates a firm stance against financial crimes within the burgeoning digital asset space.

Kazakhstan Crypto: Confronting Illicit Activity Head-On

Despite Kazakhstan’s publicly pro-crypto stance, the volume of platforms engaged in illicit financial schemes notably increased in 2025. In response, Kazakhstan’s Financial Monitoring Agency (AFM) has taken aggressive action. The AFM spokesperson confirmed the shutdown of 130 crypto platforms involved in money laundering schemes. These operations led to the seizure of a substantial sum.

• Authorities confiscated $16.7 million in various cryptocurrencies.
• These funds were directly linked to illegal operations.
• This action follows earlier seizures from illegal mining operations.

Last week, the AFM also reported seizing $642,000 from illegal mining activities. This underscores the nation’s strict approach to unlawful crypto endeavors. Yet, Kazakhstan continues to promote legitimate Kazakhstan crypto adoption simultaneously. This dual strategy aims to foster a secure and compliant digital economy.

Enhanced AML Measures Bolster Crypto Regulation

As part of its efforts to curb illicit crypto activity, Kazakhstan is reportedly introducing new requirements for money transfers. These measures aim to strengthen anti-money laundering (AML) protocols. Kairat Bizhanov, deputy chairman of the AFM, outlined these upcoming changes. He emphasized the importance of sender verification.

All bank card top-ups exceeding 500,000 tenge (approximately $925) will now require mandatory verification. This includes the sender’s Individual Identification Number (IIN). Bizhanov stated, “Previously, only the recipient’s IIN was required.” He also noted that officials are considering additional security layers. These include confirming transactions via a mobile app or SMS. These steps significantly enhance oversight. They make it harder for criminals to exploit financial systems.
Kairat Bizhanov, deputy chairman of Kazakhstan’s Financial Monitoring Agency. Source: Sozmedia.kz

Distinguishing Illicit Platforms from Licensed Digital Assets Services

The 130 crypto platforms shut down this year differ significantly from conventional centralized crypto exchanges (CEXs). An AFM spokesperson clarified this distinction. These platforms often function more like traditional currency exchange offices. They are commonly referred to as crypto exchangers. The number of such exchangers taken down saw a notable increase in 2025. The AFM reported only 36 platforms shut down last year. This sharp rise indicates a growing challenge. It also highlights the intensified regulatory focus on unregistered entities.

Conversely, Kazakhstan maintains a public register of licensed digital assets service providers. This register is overseen by the Astana Financial Services Authority (AFSA). As of publication, 20 crypto platforms had received approval to operate. The approved providers include major industry CEXs, such as Bybit and WhiteBIT. This clear separation underscores Kazakhstan’s commitment. The nation aims to nurture a legitimate crypto ecosystem while aggressively targeting illegal operations.
An excerpt from AFSA’s public register of licensed digital asset service providers. Source: AFSA

Kazakhstan’s Vision for Crypto and the Fight Against Money Laundering

Kazakhstan’s efforts to combat illicit financial activity in cryptocurrency align with its broader ambitions. The country aims to establish itself as a major hub for cryptocurrency in Central Asia. This strategic vision involves several pioneering initiatives:

• The nation has pioneered the payment of regulatory fees in stablecoins, like Tether USDt (USDT).
• It launched one of Central Asia’s first spot Bitcoin (BTC) funds.
• Kazakhstan is actively moving to establish a state-backed crypto reserve.

The destination of the seized $16.7 million remains uncertain. It is unclear whether these funds will be allocated to Kazakhstan’s potential crypto reserve. The government’s legal framework for the reserve is still being finalized. This ongoing development showcases a comprehensive approach to managing digital assets. The nation balances innovation with stringent oversight. Kazakhstan is setting a precedent for effective crypto regulation. It seeks to prevent money laundering and other financial crimes. The goal is a secure and thriving crypto economy for all participants.