Kazakhstan Cracks Down on Crypto Capital Flight Amid Hub Ambitions
Kazakhstan's President Kassym-Jomart Tokayev has declared war on illicit cryptocurrency transactions, labeling them a direct threat to national economic security. The Central Asian nation, despite positioning itself as a regional crypto hub, faces mounting challenges from shadow capital outflows and money laundering schemes.
Authorities have shuttered 130 illegal crypto exchanges handling $123 million in turnover, seizing assets worth 2.6 billion tenge. Tokayev's blunt assessment underscores the tension between innovation and regulation: 'Profit laundering and illegal withdrawals through crypto have become systemic problems.'
The crackdown comes as Kazakhstan seeks to balance its blockchain ambitions with financial oversight. Unlike neighboring crypto adopters, Astana is taking a harder line against underground exchanges—a MOVE that may redefine its role in Central Asia's digital asset landscape.
