Kazakhstan just sent a strong message to the crypto underground. The country’s Financial Monitoring Agency (AFM) announced it has shut down 130 crypto platforms linked to money laundering this year, seizing $16.7 million in digital assets tied to illegal activity.
That’s a big jump. In 2025, authorities took down just 36 platforms.
Not Exchanges, But Crypto “Exchangers”
These platforms weren’t traditional centralized exchanges. Instead, they operated like street-level currency exchange offices, often called crypto exchangers. Their main role was simple: turn crypto into cash, fast and quietly.
AFM officials say this model made them ideal tools for laundering money.
Underground Cash Networks Exposed
According to AFM Deputy Chairman Kairat Bizhanov, investigators uncovered 81 underground networks focused on converting crypto into cash. Together, these networks processed more than $43 million in transactions.
That scale raised red flags. And it pushed regulators to act.
Tighter Rules for Money Transfers
Kazakhstan is now rolling out new anti-money laundering rules nationwide. One major change stands out:
- Any bank card top-up above 500,000 tenge ($925) will require mandatory verification of the sender’s Individual Identification Number (IIN)
Previously, only the recipient’s ID was checked. That loophole is now closed.
ATMs Become the Weak Link
Authorities also flagged ATMs as a major vulnerability.
- Total ATM cash withdrawals hit $24.1 billion, up $1.8 billion year over year
- Criminals often used bank cards registered under fake identities to pull out funds
To counter this, banks must now store ATM surveillance footage for at least six months. Regulators are also preparing to introduce biometric verification, including facial recognition and fingerprint scans, for cash transactions.
A Warning on Surveillance Risks
Cybersecurity consultant David Sehyeon Baek called the move one of the boldest efforts yet to link physical identity with financial transparency. But he also warned of risks, saying weak oversight could turn these systems into mass surveillance tools and normalize full financial visibility.
Legal Crypto Still Welcome
Despite the crackdown, Kazakhstan isn’t shutting the door on crypto. According to the Astana Financial Services Authority, 20 licensed crypto platforms are currently approved to operate in the country. Major exchanges like Bybit and WhiteBIT are on the list.
The Bigger Picture
Kazakhstan wants to become a crypto hub in Central Asia, but with strict rules. Just last week, AFM reported seizing $642,000 from illegal crypto mining operations.
The message is clear: crypto is allowed, but only inside the regulatory lines. Anything outside that is being wiped out—fast.
