Kazakhstan, an emerging hub for cryptocurrency in Central Asia, has intensified its crackdown on illegal activities within the crypto sector, closing down numerous platforms this year.
The Financial Monitoring Agency (AFM) of Kazakhstan has dismantled 130 cryptocurrency platforms linked to money laundering operations this year, as confirmed by a spokesperson for the agency to Cointelegraph on Wednesday.
Authorities have also confiscated $16.7 million in various cryptocurrencies tied to these illicit activities, the AFM representative stated, validating local reports from Tuesday.
Last week, the AFM also announced the seizure of $642,000 from unauthorized mining operations in Kazakhstan, emphasizing the country’s firm approach toward illegal crypto activities while continuing to encourage crypto adoption.
Enhanced AML regulations for money transfers
As part of the initiative to address illegal financial activities, Kazakhstan is set to implement new requirements for money transfers.
According to AFM Deputy Chairman Kairat Bizhanov, mandatory verification of the sender’s Individual Identification Number (IIN) will now be required for all bank card top-ups exceeding 500,000 tenge ($925).
“In the past, only the recipient’s IIN was necessary. The option to confirm transactions through a mobile app or SMS is also under consideration,” the official mentioned at a recent government meeting, as reported by the local news agency Baq.kz reported.
Kazakhstan shut down 36 crypto platforms last year
These platforms operate more like conventional currency exchange offices, commonly referred to as crypto exchangers.
The number of crypto exchangers shut down in Kazakhstan saw a significant rise in 2025, with the AFM reporting only 36 platforms dismantled in the previous year.
As per the public registry of digital asset service providers maintained by the Astana Financial Services Authority (AFSA), 20 crypto platforms had received approval to operate in Kazakhstan at the time of publication.
Among the approved providers are notable industry CEXs, including Bybit and WhiteBIT.
Related: CBDCs vs stablecoins: Kazakhstan asserts Evo is not a competitor to digital tenge
Kazakhstan’s initiatives to combat illegal financial activities in cryptocurrency come as the country strives to position itself as a significant center for cryptocurrency in Central Asia.
The country has been a pioneer in allowing regulatory fees to be paid in stablecoins like Tether USDt (USDT), launched one of Central Asia’s first Bitcoin (BTC) spot funds, and is working towards establishing a state-backed crypto reserve.
It remains uncertain whether the confiscated $16.7 million will contribute to Kazakhstan’s proposed crypto reserve, as the government’s legal framework for the reserve is still in development.
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