Kazakhstan Blocks Over 1100 Illegal Crypto Trading Websites

Source: CryptoTale Original Title: Kazakhstan Blocks Over 1100 Illegal Crypto Trading Websites Original Link:

Regulatory Action Against Illegal Crypto Platforms

Kazakhstan’s Agency for Financial Monitoring restricted access to approximately 1,135 unauthorized crypto services within one year. Officials identified these platforms as offering trading and exchange services without state approval. According to the agency, many platforms operated openly despite lacking licenses or regulatory supervision.

The AFM described the blocking campaign as part of a national policy to align digital asset activity with regulatory standards. Authorities focused on separating legal crypto businesses from unauthorized operators. Enforcement efforts targeted platforms that bypassed compliance rules.

Criminal Investigations and Financial Recoveries

Beyond website blocking, Kazakhstan pursued criminal investigations linked to illegal crypto activity. AFM Chairman Zhanat Elimanov briefed President Tokayev on the scope of these enforcement actions. Investigators completed more than 1,135 criminal cases tied to crypto-related financial crimes.

Authorities linked several cases to schemes laundering proceeds from fraud and drug trafficking. According to official data, investigators recovered over 141.5 billion tenge for affected victims, roughly equivalent to 277 million dollars based on current exchange rates.

Law enforcement also dismantled criminal networks supporting unlicensed crypto operations. Officials said these actions targeted organized groups using digital assets to move illicit funds. The agency described the approach as focused on financial accountability rather than broad market suppression.

Policy Shifts and Market Development Plans

While enforcement expanded, Kazakhstan also adjusted its broader crypto policy framework. In 2025, officials lifted some restrictions on digital coin minting to support industrial-scale mining. The move aimed to attract investment and stabilize regulated mining activity.

Authorities also moved to widen crypto trading beyond the Astana International Financial Center. Previously, only a limited number of licensed platforms operated within the AIFC framework. The government now plans to legalize crypto investments under clearer national rules.

At the same time, officials confirmed that crypto payments remain banned outside a pilot project called CryptoCity. The pilot aims to test real-world digital asset use under controlled conditions. Regulators said unauthorized transactions and gray-market intermediaries will remain enforcement targets.