Kazakhstan Steps Up Crypto Crackdown With 130 Platform Shutdowns and $16.7M Seizure

Key Insights:

Kazakhstan’s AFM shut down 130 illicit crypto platforms in 2025, up from 36 last year.

Authorities seized $16.7M in crypto linked to money laundering and illegal mining.

The country is introducing stricter ID checks for high-value money transfers.

Kazakhstan is intensifying its fight against crypto-related financial crime as it seeks to position itself as a legitimate cryptocurrency hub in Central Asia.

The country’s Financial Monitoring Agency (AFM), according to a local news media update has shut down 130 illegal crypto platforms this year alone, a significant rise from just 36 closures in 2024.

The platforms, often referred to as crypto exchangers, functioned more like unlicensed currency exchange shops than traditional centralized exchanges (CEXs) like Binance or Bybit.

In addition to the shutdowns, Kazakh authorities seized $16.7 million worth of cryptocurrency linked to money laundering schemes, signaling a broader commitment to transparency and legal compliance in the digital asset space.

These actions build on last week’s separate seizure of $642,000 from illegal crypto mining operations in the country. With electricity subsidies and growing mining capacity, Kazakhstan has become a hotspot for crypto activity, but authorities are determined to curb abuses of the system.

New Compliance Measures Target High-Value Transfers

As part of its broader anti-money laundering reforms, Kazakhstan is introducing stricter oversight on high-value digital and fiat transactions. According to Deputy Chairman Kairat Bizhanov, bank card top-ups over 500,000 tenge (about $925) will now require mandatory verification of the sender’s Individual Identification Number (IIN).

“Previously, only the recipient’s IIN was required,” Bizhanov said, adding that officials are also considering the use of mobile apps or SMS to verify and confirm such transactions.

The move is expected to strengthen accountability and reduce the risk of anonymous money laundering through digital channels.

While cracking down on illicit activity, Kazakhstan continues to support regulated crypto adoption. According to the Astana Financial Services Authority (AFSA), 20 crypto platforms are officially licensed to operate in the country, including major players like Bybit and WhiteBIT.

These platforms benefit from the country’s efforts to build a legal framework that encourages innovation while ensuring consumer protection and anti-fraud measures.

Kazakhstan’s dual approach, promoting licensed crypto businesses while eliminating bad actors, suggests that the country is serious about becoming a credible and secure crypto hub for Central Asia and beyond.