Kazakhstan Confiscates $16.7M in Digital Assets Amid Crypto Crime Crackdown
Kazakhstan has shut down over a hundred crypto platforms, confiscating digital assets worth $16.7 million...
Quick overview
- Kazakhstan has shut down 130 unregistered crypto platforms and confiscated $16.7 million in digital assets as part of a crackdown on money laundering.
- The Astana Financial Services Authority (AFSA) mandates that only licensed cryptocurrency exchanges can operate in the country.
- Kazakh authorities have identified 81 shadow groups involved in illegal cash-out operations, uncovering over $43 million in illicit revenue.
- New regulations require biometric verification for cash transactions and mandate banks to store ATM surveillance footage for at least 180 days.
Kazakhstan has shut down over a hundred crypto platforms, confiscating digital assets worth $16.7 million.
During a statewide enforcement action aimed at combating money laundering, Kazakh financial officials shut down 130 unregistered crypto sites and confiscated $16.7 million in cryptocurrency.
Kazakhstan Expands Crypto Oversight as AFM Uncovers $43 Million in Shadow Operations.
According to Kazakh law, only cryptocurrency exchanges authorized by the Astana Financial Services Authority (AFSA) and connected with local banks are able to operate. These licenses are given under the Law on Digital Assets. Exchanges that operate without an AFSA license are still deemed unlawful in Kazakhstan.
🇰🇿 Kazakhstan is going hard on unlicensed crypto platforms:
1. 130 platforms shut down
2. $16.7M in digital assets seized
3. 81 covert cash-out networks uncovered which moved $43M+.
Here come the biometric checks for cash and violation of privacy laws due to surveillance— CamilleKenton (@TextCultEmpress) October 8, 2025
They were expected to broaden the current licensing process beyond AIFC jurisdiction to include platforms that are not registered as AIFC residents, thereby increasing digital currency transactions in the remaining areas of the country.
Kairat Bizhanov, deputy chairman of the Financial Monitoring Agency (AFM), announced the figure, which was reported in local and regional media.
The AFM is also increasing its efforts to fight unlawful cash-out operations. According to Bizhanov, 81 shadow groups with a total revenue of 24 billion KZT (more than $43 million) were discovered in 2024. He stressed that ATMs are still a key vulnerability.
Despite the steps taken, the number of cash withdrawals is still rising. A total of 13.2 trillion KZT ($24.1 billion) has already been taken away, which is one trillion more than the previous year, the chairman stated. The primary concern is the possibility of conducting anonymous transactions without disclosing the sender or recipient. These transactions are frequently carried out using bank cards granted to nominal proprietors, he explained.
Kazakhstan Tightens Cash Controls with Biometric Verification
Over the last three years, tax authorities have cancelled the registration of 3,600 shell companies linked to 30,000 illicit transactions worth 280 billion KZT ($511 million).
Authorities responded with strict control mechanisms, loading more than $913 on payment cards, which now need mandatory identification verification via government databases and mobile authentication.
Since January 1, banks have been required to store footage from cameras installed at ATMs for at least 180 days. According to the article, regulators also intend to require biometric verification, facial recognition, and fingerprint scanning for all cash-based payments.
🚨 BREAKING: Kazakhstan’s Financial Monitoring Agency has shut down 130 illegal crypto platforms, seizing $16.7M in assets as part of a major money laundering crackdown.#BitcoinNews #Bitcoin #CryptoRegulation
— mint£rpro (@Wire2Mint) October 8, 2025
Kazakhstan Strengthens Crypto Ambitions as Regional Authorities Tighten Oversight
Similar steps were recently adopted by regulators in Russia, where money mules, also known as “droppers,” are a major criminal problem.
These include allowing banks to impose a $600 daily cap on cash withdrawals in the event of questionable transactions, as well as enacting measures that have been criticized for targeting cryptocurrency dealers.
Kazakhstan, which is already a big Bitcoin mining hotspot, wants to become a hub for all crypto industry in Eurasia. While occasionally blaming miners for power outages and financial losses, Astana has acknowledged that the business generated more than $31 million in tax revenues over the last three years.
Kazakhstan’s roundup comes after law enforcement officials in Moscow raided Russian crypto exchanges suspected of assisting capital flight last month.
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