Kazakhstan is currently implementing a two-pronged approach to digital finance, aggressively shutting down unauthorized cryptocurrency operations while simultaneously establishing a state-backed digital asset ecosystem. This decisive regulatory posture signals a national commitment to imposing order and transparency on the rapidly evolving market.
The recent enforcement action targeted illicit finance channels, resulting in the termination of 130 unlicensed cryptocurrency exchanges suspected of laundering criminal proceeds. Authorities confirmed the seizure of $16.7 million in virtual assets during this sweep. Under the nation's Law on Digital Assets, only exchanges licensed by the Astana Financial Services Authority (AFSA) and integrated with local banking institutions are permitted to operate legally. This regulatory drive follows earlier actions, including the dismantling of the RAKS exchange, which allegedly laundered over $224 million in 2025. Beyond digital platforms, the crackdown addressed physical conduits, with authorities uncovering 81 shadow cash-out groups in 2024 that processed a turnover of 24 billion KZT, equivalent to approximately $43 million.
Kairat Bizhanov, Deputy Chairman of the Financial Monitoring Agency (AFM), noted that high ATM cash withdrawal volumes present a persistent vulnerability. These withdrawals totaled 13.2 trillion KZT ($24.1 billion), marking an increase of one trillion KZT from the previous year. To mitigate this risk, new regulations mandate individual identification and mobile confirmation for card top-ups exceeding 500,000 KZT ($913). Furthermore, banks are now required to retain ATM camera footage for a minimum of 180 days.
This rigorous risk mitigation is balanced by a proactive state initiative to cultivate a regulated digital environment. On September 30, 2025, the Ministry of Artificial Intelligence and Digital Development launched the state-backed Alem Crypto Fund. Managed by Qazaqstan Venture Group under the Astana International Financial Centre (AIFC) umbrella, the fund’s primary purpose is long-term investment in digital assets to build strategic national reserves. In a clear demonstration of intent, the Alem Crypto Fund, in partnership with Binance Kazakhstan, made its inaugural investment in BNB, the native token of the BNB Chain, which holds a market capitalization exceeding $138 billion.
Deputy Prime Minister Zhaslan Madiyev framed this state investment as a crucial step toward establishing digital finance as a reliable instrument for major investors and a foundation for future state savings. On the corporate compliance front, tax authorities have deregistered 3,600 shell companies over the last three years, which were implicated in 30,000 fraudulent transactions valued at 280 billion KZT ($511 million). Amendments are also being drafted to tighten business registration protocols, focusing on verifying founders based on risk criteria, a concept supported by AFSA's recent introduction of Business Risk Assessment (BURA) requirements for financial monitoring entities.