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Kazakhstan is unleashing a full-scale crackdown on illegal crypto activity, seizing millions in digital assets and targeting shadow networks fueling financial crime.
Kazakhstan Clamps Down on Unlicensed Crypto Exchanges and Financial Crime
Governments are tightening oversight of cryptocurrency markets, with Kazakhstan ramping up enforcement against unlicensed trading platforms linked to financial crimes. Deputy Chairman of the Financial Monitoring Agency (AFM) Kairat Bizhanov reportedly revealed during a recent government meeting that authorities had dismantled 130 illegal crypto exchanges suspected of laundering criminal proceeds, confiscating $16.7 million in digital assets.
Bizhanov was quoted as stating:
The activities of 130 unlicensed crypto exchanges involved in laundering criminal proceeds have been terminated this year. Virtual assets worth $16.7 million were seized.
The initiative aligns with Kazakhstan’s Law on Digital Assets, which allows only exchanges licensed by the Astana Financial Services Authority (AFSA) and connected to local banks to operate legally. Unregistered platforms outside this framework are deemed unlawful.
Moreover, he explained that the AFM had uncovered 81 shadow groups with illicit turnover amounting to 24 billion KZT ($43 million) in 2024, underscoring persistent risks tied to anonymous cash withdrawals.
The AFM, in coordination with the Ministry of Justice and the Ministry of Artificial Intelligence, has introduced tougher verification procedures for business registration to prevent shell companies from being used in financial crimes. Over the past three years, authorities have revoked the registration of 3,600 fictitious firms linked to 30,000 fraudulent transactions totaling 280 billion KZT.
Analysts note that while the crackdown highlights Kazakhstan’s strong regulatory posture, establishing a clear and efficient licensing framework could position the country as a regional hub for compliant blockchain innovation.