Abstract：Kazakhstan intensifies its crypto regulation, shutting down over 130 illegal exchanges and seizing nearly $17M to combat money laundering and protect consumers.
Kazakhstan has executed a significant enforcement action against illegal cryptocurrency exchanges, shutting down more than 130 unlicensed platforms and confiscating almost $17 million in digital assets. This large-scale operation is part of the country's broader effort to tighten its digital asset regulation, aiming to prevent financial crimes and protect investors.
Targeting Illicit Crypto Operations
The nation's Financial Monitoring Agency (AFM) reported that the crackdown focused on trading platforms operating outside the government's official licensing framework. These exchanges were facilitating unauthorized digital asset trading and international money transfers, posing risks to financial stability by failing to comply with anti-money laundering (AML) and counter-terrorism financing (CTF) laws. The AFM confirmed the seizure of approximately $16.7 million in crypto assets and announced that criminal investigations into individuals associated with these platforms are now underway. This initiative underscores a national campaign to bring greater transparency to the country's growing crypto market.
A Pattern of Enforcement Action
This recent sweep is part of a consistent regulatory push. Earlier in 2025, authorities dismantled “RAKS,” a clandestine exchange accused of laundering over $224 million connected to darknet markets. In that operation, the AFM froze associated crypto wallets and seized substantial holdings of stablecoins like USDT. These actions build upon efforts in 2024, during which regulators blocked access to over 3,500 unlicensed exchange websites and liquidated 36 illegal crypto entities, signaling a firm commitment to blockchain compliance.
Balancing Regulation with Innovation
While clamping down on illegal activities, Kazakhstan continues to foster a regulated environment for digital assets through the Astana International Financial Centre (AIFC). This government-supported financial hub provides a legal framework for legitimate digital asset service providers. Major international exchanges, such as Binance and Bybit, have already secured licenses to operate within the AIFC, adhering to strict financial oversight. This dual approach highlights Kazakhstan's ambition to position itself as a secure and reliable center for blockchain development in Central Asia, balancing innovation with robust global crypto oversight.
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