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Kazakhstan has shut down more than 130 illegal cryptocurrency exchanges and blocked over 1,100 unlicensed trading websites as President Kassym-Jomart Tokayev escalates enforcement against crypto-facilitated capital flight he says threatens national economic security.
President Kassym-Jomart Tokayev has publicly warned that illicit crypto transactions—ranging from tax evasion to money laundering—are undermining Kazakhstan’s financial system, even as the country positions itself as a regional hub for digital assets. His remarks mark one of the strongest signals yet that Kazakhstan crypto regulation will prioritize enforcement alongside market development.
Speaking during a high-level meeting at the Financial Monitoring Agency (AFM), Tokayev acknowledged that despite ongoing reforms, unauthorized crypto activity remains widespread. According to the president, attempts to move capital abroad using digital assets continue to persist, creating a growing challenge for regulators and law enforcement.
“Profit laundering and the illegal withdrawal of capital through underground crypto transactions have become a serious problem,” Tokayev said, describing the situation as a direct threat to economic stability.
As part of the intensified Kazakhstan crypto regulation drive, authorities have already shut down more than 130 illegal crypto exchange offices operating outside the country’s legal framework. These platforms reportedly processed transactions worth approximately 62 billion tenge, equivalent to over $123 million.
In addition to closing the exchanges, law enforcement agencies have seized assets valued at 2.6 billion tenge in connection with the cases. Tokayev emphasized that these figures highlight the scale of the problem rather than its resolution.
Despite these actions, unauthorized crypto trading platforms continue to advertise openly on social media, raising concerns that enforcement has not yet caught up with the pace of digital finance. Tokayev admitted that the persistence of such activity shows Kazakhstan crypto regulation still faces significant implementation gaps.
International assessments have added urgency to the government’s response. According to Tokayev, data from global organizations indicates that Kazakhstan ranks among the leading countries in terms of capital outflows.
“This issue has not been fully resolved,” the president noted, pointing out that while investigations are ongoing, there have been very few convictions related to illegal capital flight through crypto. He instructed the AFM to develop concrete proposals to strengthen enforcement and ensure accountability.
Under the renewed Kazakhstan crypto regulation agenda, authorities are expected to focus not only on digital assets but also on broader financial misconduct. Tokayev also criticized the growing practice of businesses accepting cash payments to conceal real turnover.
“Retailers are openly quoting two prices—one for cashless payments and another for cash payments minus tax,” he said, warning that such practices erode tax compliance and weaken state revenue collection.
Kazakhstan crypto regulation is unfolding against the backdrop of the country’s long-term ambition to become a major crypto and fintech hub in Eurasia. In recent years, the government has introduced legislation aimed at liberalizing the digital asset market, including reforms designed to legalize crypto investments and expand banking support for the sector.
The country gained global attention after becoming a major destination for crypto miners displaced by China’s crackdown. While the initial influx strained Kazakhstan’s energy infrastructure, authorities later introduced higher electricity tariffs and regulatory controls to stabilize the sector. Some of those restrictions were eased last year as conditions improved.
In 2025, regulators moved to broaden crypto trading beyond the Astana International Financial Center (AIFC), which had previously served as the sole legal zone for digital asset exchanges. Mining companies were once limited to selling their assets only through AIFC-registered platforms, a rule that authorities have since sought to relax under stricter oversight.
Even as market access expands, enforcement has become more aggressive. This month alone, the AFM reported blocking more than 1,100 websites offering unlicensed cryptocurrency exchange services, underscoring the zero-tolerance approach now embedded in Kazakhstan crypto regulation.
Law enforcement agencies have also targeted high-profile cases to deter violations. In January, officials announced the seizure of more than 180,000 Tether tokens from a well-known Kazakh blogger accused of illegally receiving crypto payments to promote an online gambling platform.
These actions signal that Kazakhstan crypto regulation is shifting from policy experimentation to rigorous supervision. For investors and industry players, the message is clear: compliance will be central to Kazakhstan’s crypto future.
As Tokayev stressed, illegal capital outflows—whether through crypto or traditional channels—will no longer be treated as isolated financial offenses but as systemic risks to national security.
How effectively Kazakhstan balances innovation with enforcement may determine whether its ambition to lead the regional crypto economy can withstand the pressure of stricter regulation.
