- Kazakhstan authorities have blocked over 3,500 illegal cryptocurrency exchanges
- The country’s regulator has also liquidated 36 unlicensed platforms with a turnover exceeding $113 million
- The crackdown includes the seizure of assets worth $4.8 million and the dismantling of two crypto pyramid schemes
Kazakhstan’s Financial Monitoring Agency (AFM) has intensified its efforts against unauthorized cryptocurrency activities, blocking more than 3,500 illegal exchanges. In 2024 alone, the agency liquidated 36 unlicensed platforms, collectively handling over 60 billion Kazakhstani tenge (approximately $113 million). This operation also led to the seizure of assets totaling $4.8 million and the disruption of two cryptocurrency pyramid schemes, resulting in the return of 545,000 USDT to defrauded investors.
Comprehensive Crackdown on Illegal Crypto Operations
The AFM’s crackdown is part of a broader initiative to regulate the digital asset market and prevent financial crimes. Collaborating with the National Security Committee and the Ministry of Culture and Information, the agency has enhanced its oversight of cryptocurrency transactions to combat their use in illicit activities, as was outlined in a press release:
AFM continues to work with international partners to increase control over crypto transactions and combat their use for criminal purposes. Amendments to the legislation have also been developed that introduce liability for providers of digital assets for violations in the area of money laundering. Checks of cryptocurrency transactions in financial institutions have been strengthened.
To strengthen its regulatory framework, Kazakhstan has introduced legislative amendments that hold digital asset providers accountable for money laundering violations. The AFM has intensified checks on cryptocurrency transactions within financial institutions, aiming to improve tools for effectively monitoring financial activities and dismantling criminal schemes involving virtual assets.
These measures reflect Kazakhstan’s commitment to fostering a secure and transparent digital financial environment.
Global Exchanges Eye Kazakhstan Amid Regulatory Tightening
Despite the stringent regulatory environment, major global cryptocurrency exchanges are expanding their presence in Kazakhstan. In 2023, Bybit secured a full crypto exchange license from the Astana Financial Services Authority (AFSA), and Binance received formal consent from AFSA, paving the way for a full regulatory license.
Additionally, the National Bank of Kazakhstan has initiated a pilot program to explore the development of a central bank digital currency (CBDC), the digital tenge, indicating the country’s interest in integrating digital assets into its financial system.
AFM concluded its press release by noting that it will “continue to improve tools for effective monitoring of financial transactions in order to combat criminal schemes using virtual assets.”
