The AFM of Kazakhstan has shut down illegal crypto exchanges suspected of laundering criminal proceeds, according to the agency’s deputy chairman, Kairat Bizhanov.
Authorities have seized virtual assets worth $16.7 million.
“This year, the activities of 130 unlicensed crypto exchanges involved in laundering criminal proceeds have been halted,” Bizhanov stated.
Under Kazakh law, only exchanges licensed by the regulator AIFC can operate legally in the country. They must also be integrated with local banks.
Crackdown on Illegal Cashing Schemes
The AFM is also tackling illegal cashing schemes. In 2024, the agency identified 81 shadow groups with a total turnover of 24 billion tenge (over $43 million).
To curb this practice, the AFM and the National Bank have introduced new rules. Now, topping up a card with more than 500,000 tenge ($913) requires entering a taxpayer identification number and confirming the transaction via a mobile app. From January 1, 2026, banks will also be required to keep ATM camera recordings for at least 180 days.
The authorities plan to expand the use of biometrics, including facial and fingerprint recognition, for all cash transactions.
New Rules Against Shell Companies
In collaboration with the Ministry of Justice and the Ministry of Artificial Intelligence, the agency has developed amendments to tighten business registration. The focus is on scrutinizing company founders and directors based on risk criteria.
Over the past three years, tax authorities have annulled the registration of 3,600 shell companies. These were linked to 30,000 fraudulent operations totaling 280 billion tenge ($511 million).
Earlier, on October 2, Binance founder Changpeng Zhao discussed with President Kassym-Jomart Tokayev the development of the crypto industry and the inclusion of BNB in state reserves.