Kazakhstan Closes 130 Crypto Exchanges, Seizes $16.7M

Kazakhstan Seizes $16.7 Million, Shuts 130 Illegal Crypto Exchanges

Written by Aaron S.,

Editor-In-Chief

Last Updated: October 08, 2025

Key Takeaways

Kazakhstan shut down 130 unlicensed crypto exchanges and seized $16.7 million in digital assets during a national crackdown;
Authorities uncovered 81 illegal crypto-to-cash groups processing over $43 million using fake identities and untraceable accounts;
New rules require ID checks for large card loads, six-month ATM video storage, and stricter controls to curb financial crimes.

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Authorities in Kazakhstan have shut down 130 cryptocurrency exchanges that were operating without official approval, according to a report by The Times of Central Asia.

As part of this large-scale effort, authorities also seized digital assets valued at $16.7 million.

These actions were announced by Kairat Bizhanov, Deputy Chair of the Financial Monitoring Agency, during a recent press briefing.

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He explained that, under current rules, cryptocurrency transactions are only allowed through licensed platforms that are linked with Kazakhstan’s regular banking system. These regulations aim to prevent financial crimes and maintain transparency in crypto trading.

During the same operation, investigators also uncovered 81 separate groups that were illegally exchanging crypto for cash. These underground operations had reportedly processed over $43 million worth of transactions.

According to the agency, many of these networks used fake identities to open bank accounts and transfer funds in a way that made them hard to trace.

One of the major concerns raised by officials was the continued misuse of ATMs. The total amount withdrawn from cash machines during the review period reached $24.1 billion.

To help stop this, the government introduced new rules for bank card usage. Whenever more than $913 is added to a card, the user must undergo an ID check using both government records and a mobile verification system.

Banks are also required to keep ATM video recordings for at least six months.

Recently, Dubai's Virtual Assets Regulatory Authority (VARA) penalized 19 crypto-related businesses. Why? Read the full story.