Kazakhstan Tightens Grip: Crypto Trading Now Limited to Central Bank-Approved Coins Only

Kazakhstan just slammed the regulatory door shut on crypto free-for-alls. The nation's financial overseers have mandated that all digital asset trading must now flow exclusively through a whitelist of coins blessed by the central bank. No more wild west—just a walled garden.

The New Gatekeepers

Forget decentralized dreams. The Astana International Financial Centre (AIFC) and its Financial Services Authority (FSA) are now the ultimate arbiters of what constitutes 'acceptable' digital money. Exchanges operating in the jurisdiction face a stark ultimatum: delist every unapproved asset or get shut down. This isn't a suggestion; it's an enforcement blitz.

Playing by Their Rules

The move effectively nationalizes crypto innovation, funneling all trading activity into state-sanctioned channels. Proponents argue it shields consumers from rug pulls and scams. Critics see it as a power grab—a way to monitor, tax, and control a financial frontier that was designed to bypass such gatekeepers. It turns crypto's foundational ethos of permissionless access on its head, swapping 'code is law' for 'the central bank is law.'

One cynical finance jab? It's the ultimate 'Know Your Coin' policy—because nothing says market integrity like letting the same institution that manages fiat inflation decide which digital alternatives you're allowed to buy.

The global crypto industry is watching. Kazakhstan's hardline stance creates a fascinating—and restrictive—blueprint for state-controlled digital asset markets. Whether this fosters safer adoption or strangles innovation is the billion-tenge question. One thing's clear: in Kazakhstan, the crypto party now has a very strict bouncer.

The law also introduces comprehensive regulatory frameworks for digital financial assets, while tightening controls on “unsecured” cryptocurrencies, such asand.

Kazakhstan Introduces a Three-Tier Digital Asset Framework

A significant development is the authorization and regulatory introduction of digital financial assets as a new asset class in Kazakhstan.

The new regulatory structure categorizes digital financial assets intodistinct types, each subject to different oversight mechanisms.

Stablecoins backed by fiat currency will fall under the National Bank’s requirements governing their issuance, circulation, and redemption.

Digital financial assets backed by financial instruments, property rights, goods, or other tangible assets represent the second category, while financial instruments issued electronically on digital platforms comprise the third tier.

Digital platform operators will function as newly licensed financial market entities authorized to issue these assets, subject to traditional financial instrument requirements, including risk management protocols and investor protection standards.

Additionally, the law addresses another digital asset category, “unsecured digital assets,” referring to cryptocurrencies such as bitcoin (BTC) and Ether (ETH).

The legislation provides for the establishment of cryptocurrency exchange organizations, which will be licensed and supervised by the National Bank.

To safeguard investors, the National Bank will, along with operational limits and restrictions on crypto exchanges.

For anti-money laundering and counter-terrorist financing purposes, crypto exchanges and digital asset market infrastructure participants are classified among entities subject to financial monitoring.

Aggressive Enforcement Against Illegal Operations

Kazakhstan’s regulatory push follows months of intensive enforcement action against unauthorized crypto activity.

Authorities shut down 130 illegal crypto exchanges in October 2024, seizing virtual assets worth $16.7 million suspected of laundering criminal proceeds.

Only platforms licensed by the Astana Financial Services Authority and integrated with local banks can legally operate under the Law on Digital Assets.

The crackdown extended beyond exchanges to 81 shadow cash-out groups discovered with a combined turnover reaching 24 billion KZT ($43 million) in 2024.

Kazakhstan Seizes $16.7M from Unlicensed Crypto Exchanges, Shuts Down 130 Platforms

Kazakhstan has shut down 130 illegal crypto exchanges suspected of laundering criminal proceeds and seized virtual assets worth $16.7 million.https://t.co/WVKmsTRmf9 pic.twitter.com/aY75nl0eSJ

Deputy Chairman of the Financial Monitoring Agency, Kairat Bizhanov, identified ATMs as a critical vulnerability, noting that cash withdrawals totaled 13.2 trillion KZT ($24.1 billion), 1 trillion more than the previous year.

Anonymous transactions using nominee-owned bank cards enable criminals, including cyber fraudsters and drug traffickers, to operate without sender or recipient identification.

Throughout 2023 and 2024, the Financial Monitoring Agency blocked over 3,500 illegal online crypto exchanges in coordination with the National Security Committee and the Ministry of Culture and Information.

In 2024 alone, regulators closed 36 illegal exchangers handling a total of 60 billion tenge ($112 million) in turnover, while Kazakhstan officially blocked Coinbase’s website for violating digital asset regulations.

Kazakhstan Greenlights Crypto Banks and National Reserve Fund

Despite strict enforcement measures, Kazakhstan is simultaneously exploring progressive digital asset initiatives.

Prime Minister Olzhas Bektenov announced plans to launch crypto banks as part of a broader strategy to build a sustainable, regulated ecosystem.

Kazakhstan is exploring the launch of crypto banks as part of its broader push to build a sustainable and regulated digital asset ecosystem.#Kazakhstan #Bitcoinhttps://t.co/egghK92tqY

These institutions WOULD offer digital asset exchange services, secure storage solutions, and transaction processing through infrastructure providers,s including digital asset platforms, custodians, brokers, and dealers.

Kazakhstan also intends to establish a national cryptocurrency reserve fund valued between $500 million and $1 billion by early 2026, according to Bloomberg reporting.

The initiative represents one of Central Asia’s most ambitious moves to integrate digital assets into state-managed investment portfolios, though authorities have indicated the fund will avoid direct exposure to volatile cryptocurrencies like Bitcoin and adopt a cautious investment approach.