Kazakhstan authorities have closed 130 unauthorized cryptocurrency exchanges and confiscated virtual assets worth $16.7 million, according to local media citing Kairat Bizhanov, Deputy Head of the Financial Monitoring Agency (AFM).
The shuttered exchanges are suspected of money laundering and other illicit financial activities. Under Kazakhstan’s law, only exchanges licensed by the Astana Financial Services Authority (AFSA) and integrated with local banks are legally allowed to operate. Platforms without proper authorization are considered illegal.
Strengthening Controls Against Cash-Out Risks
The AFM has intensified efforts to curb illegal crypto-to-cash transactions. In 2024 alone, authorities uncovered 81 shadow groups handling over 24 billion tenge (~$43 million). ATMs remain a vulnerable point in the financial system, according to Bizhanov, highlighting the risk of anonymous transfers without proper identification.
New Regulatory Measures
To tighten oversight, Kazakhstan’s AFM and National Bank have introduced new rules for cash withdrawals:
- Card top-ups over 500,000 tenge (~$913) now require individual identification numbers and verification through a mobile app.
- Banks must store ATM video footage for at least 180 days.
- Biometric verification (facial recognition and fingerprints) is being expanded for all cash operations.
Ongoing Crypto Developments
Despite these restrictions, cash withdrawal volumes continue to grow, reaching 13.2 trillion tenge (~$24.1 billion) — one trillion more than the previous year. This crackdown comes alongside the launch of Kazakhstan’s pilot national stablecoin, Evo (KZTE), pegged to the local currency, the tenge.
The AFM emphasizes that these measures are part of a broader effort to protect the financial system from illicit crypto activity and ensure that licensed exchanges remain the primary gateways for digital asset trading in the country.
