- Kazakhstan shut down 130 unlicensed crypto platforms and seized $16.7 million in digital assets.
- Authorities uncovered 81 networks converting crypto to cash, handling over $43 million.
- ATM cash withdrawals totaled $24.1 billion, up $1.8 billion year-over-year.
- Government introduced strict ID verification and plans biometric checks for cash transactions.
- Cybersecurity experts warned these controls could raise privacy concerns without strong data protection laws.
Kazakhstan’s financial authorities conducted a national crackdown on illegal cryptocurrency activity, shutting down 130 unlicensed digital asset platforms and confiscating assets valued at $16.7 million. The enforcement targeted suspected money laundering using digital currencies.
According to Kairat Bizhanov, Deputy Chairman of the Financial Monitoring Agency, domestic law only allows crypto trading on licensed platforms connected to banks and regulated by the Astana Financial Services Authority. Investigators also identified 81 underground cash-out networks that processed more than $43 million through illicit conversions.
Bizhanov said criminals used fraudulent bank cards registered under false identities to move funds between unknown parties. Authorities noted ATM cash withdrawals reached $24.1 billion in the measured period, an increase of $1.8 billion from the previous year. ATMs were labeled as a key weak spot in cash control.
The government now requires identity verification for payment cards loaded with more than $913. This verification uses government databases and mobile authentication. Financial institutions must keep ATM video footage for six months. Regulators are preparing to require additional measures, like facial recognition and fingerprint scanning, for all cash-based transactions.
Cybercrime consultant David Sehyeon Baek told Decrypt that tying identity checks to financial transactions could help reduce crime and impersonation. However, he cautioned that, “without strong data-protection laws and independent oversight,” biometrics could also lead to unwanted financial surveillance. “In the right hands, biometrics can strengthen digital trust; in the wrong ones, it can normalize total financial visibility.”
Baek also noted that a balance is needed to prevent anti-crime efforts from reducing citizens’ privacy rights or creating risky biometric databases.
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