Kazakhstan Cracks Down On Illicit Crypto Activity, Seizes $17M

Kazakhstan, an emerging cryptocurrency hub in Central Asia, has been cracking down on illicit activity in the cryptocurrency sector, shutting down dozens of crypto platforms this year.

Kazakhstan’s Financial Monitoring Agency (AFM) has taken down 130 crypto platforms involved in money laundering schemes this year, a spokesperson for the agency told Cointelegraph on Wednesday.

The authorities have also seized $16.7 million in various cryptocurrencies linked to these illegal operations, the AFM representative said, confirming local reports from Tuesday.

Last week, AFM also reported seizing $642,000 from illegal mining operations in Kazakhstan, underscoring the country’s strict stance on illicit crypto activities while continuing to promote crypto adoption.

New AML measures for money transfers

As part of the efforts to curb illicit financial activity, Kazakhstan is reportedly introducing new requirements for money transfers.

According to AFM Deputy Chairman Kairat Bizhanov, all bank card top-ups with an amount exceeding 500,000 tenge ($925) will require mandatory verification of the sender’s Individual Identification Number (IIN).

“Previously, only the recipient’s IIN was required. Additionally, the possibility to confirm the transaction via a mobile app or SMS is being considered,” the official said at a recent government meeting, the local news agency Baq.kz reported.

Kazakhstan took down 36 crypto platforms last year

Addressing the shutdown of 130 crypto platforms in Kazakhstan this year, an AFM spokesperson emphasized that these platforms differ from conventional centralized crypto exchanges (CEXs).

These platforms function more like traditional currency exchange offices and are commonly referred to as crypto exchangers.

The number of crypto exchangers shut down in Kazakhstan saw a notable increase in 2025, with the AFM reporting only 36 such platforms taken down last year.

According to the public register of digital asset service providers maintained by the Astana Financial Services Authority (AFSA), 20 crypto platforms had been approved to operate in Kazakhstan as of the time of publication.

Among the approved providers, the register includes major industry CEXs, including Bybit and WhiteBIT.

Related: CBDCs vs stablecoins: Kazakhstan says Evo not a rival to digital tenge

Kazakhstan’s efforts to combat illicit financial activity in cryptocurrency emerged amid the country’s attempts to establish itself as a major hub for cryptocurrency in Central Asia.

The country has pioneered the payment of regulatory fees in stablecoins, such as Tether USDt (USDT), launched one of Central Asia’s first spot Bitcoin (BTC) funds, and is moving to establish a state-backed crypto reserve.

It remains unclear whether the seized $16.7 million will be allocated to Kazakhstan’s potential crypto reserve, as the government’s legal framework for the reserve is still being finalized.

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