Kazakhstan Cracks Down on Unlicensed Crypto Exchanges, Seizing Over $17 Million
Kazakhstan has launched a sweeping crackdown on illegal cryptocurrency platforms, shutting down more than 130 unlicensed platforms and seizing nahead $17 million in digital assets. The move marks one of the country’s largest enforcement actions to date, as regulators tighten oversight of the crypto industry to curb money laundering, fraud, and unregulated cross-border transactions.
Regulatory sweep targets illicit crypto operations
According to Kazakhstan’s Financial Monitoring Agency (AFM), the crackdown focused on platforms operating outside the country’s licensing framework. These platforms were allegedly conducting large-scale digital asset trading and international transfers without government authorization. Authorities say such activity poses significant risks to financial stability and consumer protection, given the lack of compliance with anti-money-laundering (AML) and counter-terrorism financing (CTF) regulations.
In a public statement, the AFM confirmed that approximately $16.7 million worth of crypto assets were confiscated in the operation. Officials revealed that several individuals connected to the unlicensed platforms have been identified, with criminal investigations underway. The agency emphasized that the initiative is part of an ongoing national campaign to bring greater transparency and accountability to Kazakhstan’s rapidly expanding crypto market.
The latest enforcement follows a similar operation earlier in 2025, when authorities dismantled a clandestine platform known as “RAKS.” That platform allegedly laundered over $224 million through crypto channels linked to darknet marketplaces. The AFM said it has since frozen wallets tied to RAKS and seized significant holdings in stablecoins such as USDT.
Kazakhstan tightens oversight while supporting licensed platforms
Despite the crackdown, Kazakhstan continues to promote regulated crypto activity through the Astana International Financial Centre (AIFC), a government-backed hub that licenses and supervises legitimate digital asset service providers. Major global platforms, including Binance and Bybit, have obtained authorization to operate within this framework, subject to strict compliance with financial regulations.
Kazakhstan’s dual approach—encouraging regulated innovation while dismantling illegal operations—reflects its ambition to become a trusted jurisdiction for blockchain development and crypto investment in Central Asia. Authorities have pledged to maintain a balanced stance that supports technological growth while protecting the financial system from illicit use.
Earlier reports from the AFM noted that regulators had blocked more than 3,500 unlicensed platforms and liquidated 36 illegal entities during 2024. The recent wave of enforcement builds upon those efforts, signaling a continued commitment to tightening control over the digital asset sector.
Kazakhstan’s actions come as global regulators intensify scrutiny on crypto platforms that operate without clear oversight. The country’s move to seize millions in unregistered digital assets could set a regional precedent, pushing neighboring Central Asian nations to strengthen their own regulatory frameworks.
Industry observers note that Kazakhstan’s crackdown underscores a growing global consensus: sustainable crypto adoption requires robust regulation. As the AFM continues to monitor digital asset flows, Kazakhstan is positioning itself as a model for balancing innovation with compliance—aiming to secureguard its financial system while attracting legitimate blockchain enterprises.
With its latest enforcement wave, Kazakhstan sends a clear message to the crypto industry—unlicensed operations will no longer be tolerated. The country’s commitment to regulatory integrity may well determine its role as a leading crypto jurisdiction in Eurasia.
