Michaela
Kazakhstan’s Financial Monitoring Agency (AFM) has shut down 130 unlicensed crypto exchanges and seized $16.7 million in digital assets as part of an ongoing crackdown on money laundering and illicit financial activity.
Key points:
- Kazakhstan shut down 130 unlicensed crypto exchanges and seized $16.7M in digital assets to combat money laundering.
- Authorities uncovered 81 underground cash-out groups with a combined turnover of 24B KZT (~$51.36M) and highlighted risks from anonymous ATM transactions totaling 13.2T KZT (~$24.4B).
- New regulations require ID verification for large card top-ups, extended ATM footage retention, and stricter business registration to prevent shell companies.
Deputy Chairman of the AFM, Kairat Bizhanov, confirmed the closure of the exchanges and the asset seizure during a recent government meeting, according to The Times of Central Asia. In Kazakhstan, only cryptocurrency exchanges licensed by the Astana Financial Services Authority (AFSA) and connected to local banking systems are authorized to operate under the nation’s Law on Digital Assets.
“The activities of 130 unlicensed crypto exchanges involved in laundering criminal proceeds have been terminated this year. Virtual assets worth $16.7 million were seized,” Bizhanov stated.
Related: Dubai Purges Privacy, Stablecoins In Strict New Crypto Laws
According to the report, the agency is ramping up efforts against illicit cash-out schemes. Bizhanov revealed that 81 underground groups, with a combined turnover of 24 billion KZT (around $51.36 million), were identified in 2024, emphasizing that automated teller machines (ATMs) continue to pose a significant vulnerability.
Related: Excluding Bitcoin Now Poses Greater Portfolio Risk Than Volatility: VanEck
Bizhanov noted that cash withdrawals continue to rise despite existing measures, totaling 13.2 trillion KZT (around $24.4 billion), an increase of one trillion KZT from last year. He emphasized the primary risk as anonymous transactions, often conducted using bank cards issued to nominal owners, which obscure the identities of senders and recipients.
The AFM and the National Bank of Kazakhstan have introduced new regulations to curb illicit cash activities. Card top-ups exceeding 500,000 KZT (around $926) now require users to provide their individual identification number (IIN) and confirm transactions via mobile apps. Since January, banks have been mandated to retain ATM camera footage for at least 180 days, with plans to expand biometric verification, including facial and fingerprint recognition, for all cash operations.
The AFM, working alongside the Ministry of Justice and the Ministry of Artificial Intelligence, has drafted amendments to strengthen business registration procedures. The reforms focus on verifying company founders and executives according to risk-based criteria, following a surge in fictitious companies used for money laundering and financial fraud, Bizhanov noted.
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MICHAELA
Michaela is a news writer focused on cryptocurrency and blockchain topics. She prioritizes rigorous research and accuracy to uncover interesting angles and ensure engaging reporting. A lifelong book lover, she applies her passion for reading to deeply explore the constantly evolving crypto world.
