Kazakhstan's AFM Seizes $16.7 Million in Crypto Exchanges
- Kazakhstan AFM leads crypto crackdown, seizing $16.7 million.
- 130 local crypto exchangers impacted under new regulations.
- No major centralized exchanges were affected or involved.
Kazakhstan’s Financial Monitoring Agency has closed 130 crypto exchanges, seizing $16.7 million, targeting illegal financial activities in 2025.
This crackdown aims to strengthen anti-money laundering efforts, highlighting growing regulatory scrutiny in the crypto market without affecting major token prices or global liquidity.
Kazakhstan’s Financial Monitoring Agency has targeted money laundering by shutting down 130 crypto exchangers in 2025. The effort resulted in the seizure of approximately $16.7 million in cryptocurrencies, marking an increase from past actions. The agency, led by Kairat Bizhanov, has implemented stringent regulatory measures requiring AML checks for bank card top-ups over 500,000 tenge.
The crackdown primarily affects local exchange platforms, distinct from major centralized exchanges like Bybit and WhiteBIT. No statements have been issued by these large exchanges regarding the situation. Notably, the seized assets include holdings in multiple cryptocurrencies, although specifics remain undisclosed.
Kairat Bizhanov, Deputy Chairman, Agency of Financial Monitoring (AFM), said: “Previously, only the recipient’s IIN was required. Additionally, the possibility to confirm the transaction via a mobile app or SMS is being considered” – Source
The market and financial implications focus on local liquidity impacts, as large asset liquidations have not been announced. Globally, similar actions have been seen with minimal direct price influence on major tokens like BTC and ETH.
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Regulatory enforcement in other countries, such as Russia and China, has historically shown negligible effects on global TVL.
Historically, the effect on major tokens from such crackdowns remains limited unless significant asset sell-offs occur, which hasn’t been documented here. Kazakhstan’s actions now also consider introducing a state-backed crypto reserve, aiming to balance illicit activity prevention with advancing legal crypto use.
