Kazakhstan Shuts 130 Unlicensed Crypto Exchangers

Kazakhstan’s Financial Monitoring Agency says it shut down 130 unlicensed crypto platforms this year and seized about $16.7 million in cryptocurrencies, plus a separate $642,000 seizure tied to illegal mining. Officials said the closed sites were largely crypto exchangers — services used to convert crypto to cash — and investigators exposed some 81 clandestine networks that processed more than $43–44 million in illicit transactions. The AFM highlighted persistent vulnerabilities in the cash-based system, including large ATM cash extractions and criminals using bank cards registered to false identities. To curb abuse, Kazakhstan is introducing tighter banking controls: bank-card top-ups above 500,000 tenge (~$925) will require verification of the sender’s Individual Identification Number (IIN), with mobile app or SMS confirmation under consideration. Regulators now require banks to retain ATM surveillance footage and are preparing stricter measures such as biometric (facial/fingerprint) authentication for cash transactions. Authorities say these steps aim to rein in illicit crypto operations while preserving a framework for regulated digital-asset activity.