Kazakhstan closes 130 crypto platforms in shadow economy crackdown

By&nbspGaliya Khassenkhanova

Published connected 31/10/2025 - 17:15 GMT+1 •Updated 19:07

Kazakhstan has intensified its conflict against financial crime, closing 130 cryptocurrency exchanges linked to money laundering and confiscating integer assets weighted astatine $16.7 cardinal (€14.4 million), nan Kazakh Agency for Financial Monitoring (AFM) reported.

According to nan AFM, these protector platforms were utilized by criminal groups crossed Kazakhstan, Russia, Ukraine and Moldova to launder proceeds from supplier trafficking and online fraud.

The agency described nan strategy arsenic a multi-step process. Drug dealers and cybercriminals first transferred their profits, either successful fiat aliases cryptocurrency, to speech wallets, wherever nan costs were converted and routed done a bid of transactions to disguise their origin.

“These illicit exchanges enactment arsenic master money launderers, cashing retired and transferring criminal income abroad,” AFM connection said. “They trust connected slope accounts and wallets belonging to beforehand men.”

Under Kazakh law, only platforms licensed by nan Astana Financial Services Authority (AFSA) and integrated pinch nan nationalist banking strategy are permitted to operate. The Authority places beardown accent connected cybersecurity and individual information protection.

“The AFSA rigorously reviews nan information of customer plus retention during licensing, requiring segregated customer accounts and audited IT infrastructure that meets strict cybersecurity standards,” said their statement.

As of Monday, 27 Digital Asset Service Providers (DASPs), including 12 crypto exchanges, are authorised to run successful Kazakhstan. All are taxable to ongoing financial monitoring and compliance pinch anti-money laundering and counter-terrorist financing regulations.

Hidden cash-out networks

The AFM besides uncovered 81 clandestine groups that specialised successful converting illicit costs into cash, pinch full transactions exceeding €38.5 million.

In a state that prides itself connected its integer costs culture, wherever you tin salary for a loaf of breadstuff pinch a QR code, rate remains 1 of nan fewer ways to conceal financial activity.

AFM Deputy Chairman Kairat Bizhanov noted that rate withdrawals proceed to grow, reaching €21 cardinal this year, which is €1.6 cardinal much than successful 2024. ATMs are identified arsenic a awesome vulnerability successful this system.

He emphasised that anonymous transfers stay a cardinal challenge, arsenic they let money to move done nan strategy without identifying either sender aliases recipient.

To reside this, nan AFM and nan National Bank of Kazakhstan are introducing caller information measures.

Cash deposits exceeding 500,000 tenge (€802) will soon require users to participate a individual recognition number. Starting 1 January, banks must besides shop ATM video footage for astatine slightest 180 days.

“Additionally, biometric verification done facial aliases fingerprint nickname is being considered. These measures will thief adjacent loopholes for anonymous transactions,” Bizhanov said.

Other financial violations

Authorities besides dismantled 18 forbidden accommodation producing baccy and alcohol, and intercepted nan unlawful export of petroleum products worthy €27 million.

Law enforcement seized €19 cardinal worthy of vapes, banned successful Kazakhstan since 2024, and unopen down 62 underground gambling operations, including 11 online casinos.

“A important information of financial violations stems from nan activities of ammunition companies,” Bizhanov added.

Over nan past 3 years, taxation authorities person deregistered 3,600 specified entities, which had facilitated much than 30,000 fictitious transactions worthy €450 million.

Kazakhstan intends to trim nan stock of nan protector system to 15% of GDP by nan extremity of this year, arsenic authorities tighten power complete nan country’s quickly digitising financial system.