Kazakhstan has intensified its crackdown on financial crimes, shutting down 130 unlicensed cryptocurrency exchanges involved in laundering criminal proceeds.
Deputy Chairman of the Financial Monitoring Agency (AFM), Kairat Bizhanov, announced that authorities have seized virtual assets worth $16.7 million in connection with these operations.
Under national legislation, only crypto exchanges licensed by the Astana Financial Services Authority (AFSA) and connected to local banks are permitted to operate legally.
The country’s Law on Digital Assets clearly defines unauthorized platforms as illegal. In addition to tackling illicit crypto activities, the AFM is stepping up efforts against shadow banking and illegal cash-out schemes.
In 2024 alone, 81 underground groups with a combined turnover of 24 billion KZT (over $43 million) were uncovered. ATMs, Bizhanov noted, remain a major vulnerability in the system.
“Despite existing measures, cash withdrawal volumes continue to rise,” Bizhanov said. “So far, 13.2 trillion KZT has been withdrawn, one trillion more than last year. Anonymous transactions using bank cards issued to third parties pose a serious risk.”
To counter this, the AFM and the National Bank have introduced stricter regulations. Card top-ups exceeding 500,000 KZT ($913) now require users to enter their Individual Identification Number (IIN) and confirm the transaction via a mobile app.
Since January 1, all banks must store ATM camera footage for at least 180 days. Authorities also plan to expand biometric ID measures, including facial and fingerprint recognition for cash transactions.
In cooperation with the Ministries of Justice and Artificial Intelligence, new amendments have been drafted to tighten business registration rules.
The focus is on verifying founders and executives to prevent the use of shell companies.
Over the past three years, tax officials have dissolved 3,600 fake firms tied to 30,000 fraudulent transactions totaling 280 billion KZT.
Kazakhstan continues its ambition to become Central Asia’s digital asset regulation hub.