Kazakhstan closed 130 illegal crypto exchanges, seizing $16.7 million in virtual assets. Only licensed exchanges integrated with local banks can operate. Authorities also uncovered 81 shadow cash-out groups with a turnover of $43 million in 2024. ATMs remain a vulnerability with $24.1 billion in cash withdrawals, enabling anonymous transactions for criminals.

A national crypto reserve, Alem Crypto Fund, launched with BNB as the first asset. Aimed at major investors, it was established by the Ministry of Artificial Intelligence. Regulations now require individual identification for top-ups exceeding $913 and expanded biometric identification for all cash transactions.

Authorities tightened business registration protocols after canceling 3,600 shell company registrations linked to $511 million in fraudulent transactions. In 2024, 36 illegal crypto exchanges with a $112 million turnover were shut down. Over 3,500 illegal online exchanges were blocked this year, returning 545,000 Tether and freezing 120,000 USDT.

Kazakhstan approved stablecoin payments for regulatory fees, with Bybit becoming the first exchange to sign a MOU with AFSA. President Tokayev unveiled “CryptoCity” as a pilot zone for cryptocurrency payments. The country is developing a digital tenge and launched Central Asia’s first spot Bitcoin ETF.

Plans are underway to invest gold, foreign exchange reserves, and National Fund assets into crypto-linked investments. The Solana Economic Zone Kazakhstan was launched as the first Web3-focused economic zone in Central Asia, offering programs in tokenized capital markets, talent development, and startup support.

Read more at Yahoo Finance: Kazakhstan Seizes $16.7M from Unlicensed Crypto Exchanges, Shuts Down 130 Platforms