Kazakhstan has blocked over 1,100 unauthorized crypto exchange platforms in an aggressive move to clean up its digital finance sector.
Quick Summary – TLDR:
- Over 1,100 unlicensed crypto platforms were blocked in Kazakhstan in 2025.
- Authorities dismantled 15 criminal groups and froze 20,000 bank accounts.
- The crackdown is part of a broader push to make Kazakhstan a regulated digital asset hub.
- $277 million was recovered for victims and over $4 billion in criminal flows were identified.
What Happened?
Kazakhstan’s Financial Monitoring Agency (AFM) confirmed that it shut down more than 1,100 online crypto exchangers operating without licenses in 2025. The sweeping action is part of the country’s ongoing effort to regulate digital assets and prevent illicit financial activity.
AFM Chairman Zhanat Elimanov shared the data during a recent briefing with President Kassym-Jomart Tokayev. He detailed how illegal exchanges were facilitating money laundering and fraud, prompting widespread enforcement actions.
🇰🇿 Kazakhstan has blocked over 1,100 crypto trading websites in a year as part of a crackdown on illegal platforms.
— First1Bitcoin (@First1Bitcoin) January 13, 2026
Regulation is tightening fast. pic.twitter.com/YAVDAv0VF8
Kazakhstan’s Crypto Sector Faces Tougher Oversight
In recent years, Kazakhstan has become a hotspot for cryptocurrency mining and digital asset activity, especially after China’s crypto mining ban in 2021 pushed many miners to Central Asia. But with that growth came a spike in unlicensed operations and illicit financial flows, prompting authorities to step up control.
Here’s what the authorities did in 2025:
- Blocked access to 1,100+ unregistered crypto exchanges.
- Investigated 1,135 financial crimes, returning 141.5 billion tenge (approx. $277 million) to victims.
- Dismantled 15 criminal groups and 29 underground cash service providers.
- Shut down 22 shadow exchanges involved in laundering proceeds from drug trafficking and fraud.
- Froze 20,000 bank cards linked to criminal money mules.
- Identified 2.1 trillion tenge (over $4 billion) in illegal funds through 35 payment institutions.
Building a Legal Framework for Crypto
The government’s strategy is not just about shutting down the bad actors. It’s also about creating a controlled, legitimate market for digital assets. In 2025, Kazakhstan eased some restrictions on coin minting and encouraged trading via regulated platforms, especially within the Astana International Financial Center (AIFC).
As part of that effort:
- Authorities are pushing to legalize crypto investments while keeping retail crypto payments restricted to a pilot project called CryptoCity.
- Efforts are being made to steer activity to licensed exchanges operating within AIFC.
- The AFM is coordinating with multiple government bodies to ensure cross-institution enforcement.
Notable Enforcement Actions
Kazakhstan’s crypto crackdown had several headline-making moments in 2025:
- In September, officials seized $10 million in digital assets from a crypto pyramid scheme that defrauded investors in Kazakhstan, Russia, and Belarus
- Later that month, the country took down RAKS, the largest known crypto money laundering operation in the region, which was active on the dark web
- In October, AFM announced it busted nearly 130 unlicensed exchanges, seizing $17 million in crypto
- By November, the Ministry of Internal Affairs had opened over 1,000 crypto-related criminal cases in two years, with victim losses exceeding $15 million
SQ Magazine Takeaway
Honestly, I think Kazakhstan is setting a bold example for how to clean up the crypto space without killing innovation. While many countries are still trying to figure out where to draw the line, Kazakhstan is going all in on enforcement and infrastructure. Blocking over a thousand illegal platforms is no small feat. But what really stands out to me is how they’re pairing this with a clear plan for regulated growth. This could turn Kazakhstan into a serious player in crypto if they play it smart. And if you’re in crypto, it’s a reminder that the days of the wild west are coming to an end.
