Kazakhstan Cracks Down on Unlicensed Crypto Exchanges, Seizes $16.7M

Kazakh financial authorities have shuttered 130 unlicensed cryptocurrency platforms in a sweeping enforcement action, confiscating digital assets worth $16.7 million. The crackdown targeted operations suspected of processing illicit funds, with Deputy Chairman Kairat Bizhanov emphasizing that domestic law permits crypto trading only through licensed platforms integrated with traditional banking systems.

Financial monitors uncovered 81 underground networks facilitating crypto-to-cash conversions, handling over $43 million in transactions. The operation highlights systemic vulnerabilities in cash-based financial systems, where criminals exploit loopholes in bank card registrations.

Planned biometric authentication for cash transactions raises concerns among privacy advocates. Without robust data-protection laws and independent oversight, such measures risk evolving into invasive surveillance infrastructure.