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Kazakhstan Targets Illegal Crypto, 130 Platforms Closed, $17 Million Seized

Finance Magnates

Cryptocoins News / Finance Magnates 11 Views

Kazakhstan is taking action against unlawful activity in the cryptocurrency sector, closing several platforms this year. The country’s Financial Monitoring Agency said that 130 crypto platforms linked to money laundering schemes had been shut down.

The agency confirmed that $16.7 million in cryptocurrencies connected to these operations had been seized, echoing local reports from Tuesday.

New Verification Rules Target Large Transfers

Last week, the AFM reported confiscating $642,000 from illegal mining activities. Authorities said these actions reflect the government’s strict approach to unlawful crypto operations, even as it continues to support regulated digital asset use.

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In line with the measures, new rules for money transfers are planned. AFM Deputy Chairman Kairat Bizhanov said bank card top-ups above 500,000 tenge ($925) will require verification of the sender’s Individual Identification Number (IIN). Previously, only the recipient’s IIN was checked. Officials are also considering confirmation through mobile apps or SMS.

The platforms closed this year are not typical centralized crypto exchanges. The AFM said they function more like traditional currencyexchange offices and are often called crypto exchangers. In 2024, 36 such exchangers were closed.

Country Launches Bitcoin Fund, Stablecoin Payments

Kazakhstan has been trying to position itself as a cryptocurrency hub in Central Asia. The country has allowed regulatory fees to be paid in stablecoins like Tether (USDT) and launched one of the region’s first spot Bitcoin funds.

Kazakhstan has also taken steps to establish a state-backed cryptocurrency reserve. The Alem Crypto Fund, launched under the Astana International Financial Centre and managed by Qazaqstan Venture Group, is intended to build long-term digital asset reserves.

The fund has received initial investments in Binance Coin and forms part of the country’s broader strategy to integrate cryptocurrencies into its financial system and strengthen its position as a regional hub for digital finance.

This article was written by Tareq Sikder at www.financemagnates.com.
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