Kazakhstan, increasingly recognized as a cryptocurrency hub in Central Asia, has intensified its efforts against illegal activities in the sector, closing down numerous crypto platforms this year.
According to a spokesperson from Kazakhstan’s Financial Monitoring Agency (AFM), 130 crypto platforms linked to money laundering operations have been dismantled this year, as reported to Cointelegraph on Wednesday.
The authorities have also confiscated $16.7 million in various cryptocurrencies associated with these illegal activities, affirming local reports from Tuesday, as stated by the AFM representative, confirming.
Furthermore, last week the AFM announced the seizure of $642,000 from illegal mining operations in Kazakhstan, highlighting the government’s firm stance on illicit crypto activities while still advocating for crypto adoption.
New AML measures for money transfers
In an effort to mitigate illicit financial transactions, Kazakhstan is reportedly implementing new regulations for money transfers.
AFM Deputy Chairman Kairat Bizhanov stated that any bank card top-ups exceeding 500,000 tenge ($925) will necessitate mandatory verification of the sender’s Individual Identification Number (IIN).
“Previously, only the recipient’s IIN was needed. We are also considering the option to confirm transactions via a mobile app or SMS,” the official mentioned during a recent government meeting, as reported by local news agency Baq.kz reported.
Kazakhstan took down 36 crypto platforms last year
These platforms resemble conventional currency exchange offices and are typically known as crypto exchangers.
The number of crypto exchangers closed down in Kazakhstan notably increased in 2025, with the AFM reporting just 36 such platforms closed last year.
According to the public register maintained by the Astana Financial Services Authority (AFSA), 20 crypto platforms were authorized to operate in Kazakhstan at the time of publication.
Among these approved providers are significant industry CEXs, including Bybit and WhiteBIT.
Related: CBDCs vs stablecoins: Kazakhstan says Evo not a rival to digital tenge
Kazakhstan’s initiatives to combat illicit financial conduct in cryptocurrency coincide with the country’s ambitions to establish itself as a key player in the Central Asian cryptocurrency market.
The nation has taken the lead in utilizing regulatory fees in stablecoins, like Tether USDt (USDT), initiated one of Central Asia’s first spot Bitcoin (BTC) funds, and is working towards creating a state-supported crypto reserve.
It remains uncertain whether the seized $16.7 million will contribute to Kazakhstan’s prospective crypto reserve, as the government’s legal framework for it is still in the works.
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