Kazakhstan’s Agency on Financial Monitoring (AFM) is tightening the noose around illegal crypto operations as the country is emerging as a sector hub in central Asia. So far this year, the national authorities have already seized $16.7 million from crypto firms that were identified to have been involved in money laundering operations.
Between January and September this year, the AFM has reportedly pulled down the shutters of 130 crypto exchanges. The crypto sector has been named among the most “shady” sectors in Kazakhstan alongside tobacco, gambling, and online casinos.
As per local publication Zakon.kz, deputy chairman of the AFM, Kairat Bizhanov disclosed the information during a government meeting held on October 7.
The development comes at a time when Kazakhstan’s President Kassym-Jomart Tokayev is chalking out a roadmap to refresh the country’s economy with a digital first approach. In September, President Tokayev directed the government to draft a legislative framework to oversee the digital assets sector. These guidelines are expected to be ready by 2026.
In order to ensure that the national crypto ecosystem is legitimate and safe for engagement, the authorities of Kazakhstan have ramped out crack downs over suspicious operations.
Last week, for instance, the AFM said that it busted multiple illegal crypto mining operations in the cities of Astana, Shymkent, and Kostanay.
By 2026, the country is planning to launch a state crypto reserve as well as a CryptoCity initiative to focus on growing its Web3 ecosystem.
Last month, Kazakhstan’s National Bank announced the launch of a pilot stablecoin project named Evo, under the ticker KZTE. The coin is a collaborative effort between Solana, Mastercard, Intebix exchange, and Eurasian Bank.