Kazakh authorities move against top crypto platforms in legality probe

Kazakhstan’s main financial regulator has accused several global crypto exchanges of conducting illegal operations in the country.

Obtaining a license is mandatory for all coin trading platforms in the Central Asian nation and international popularity is not accepted as excuse.

Leading crypto exchanges banned from trading in Kazakhstan

The Astana Financial Services Authority (AFSA) has issued a warning about unlicensed crypto trading, specifically mentioning some of the world’s top players in the sector.

Organizing the exchange of digital assets without the appropriate permit, issued in accordance with existing law, is prohibited, the watchdog said in a notice.

Under Kazakhstan’s current legislation, such licenses are issued within the legal regime governing the Astana International Financial Center (AIFC).

The financial hub in the capital city hosts the country’s authorized cryptocurrency exchanges, although Kazakh authorities intend to expand licensing beyond its jurisdiction.

A number of unlicensed crypto platforms advertise and promote their services in the Republic of Kazakhstan, the regulator stated Tuesday.

These include HTX, Bitget, OKX, and MEXC, the government agency detailed in a press release and reminded:

“Only entities licensed by the AFSA are legally authorized to conduct regulated activities in or from the AIFC, including activities linked to digital assets and related services.”

The regulatory body then warned that using unlicensed exchanges brings a lot of risks, such as loss of investment, leak of personal data and hacks, lack of protection for consumer rights and potential involvement in fraudulent schemes.

The AFSA also noted that just because a crypto exchange is widely known and convenient, that doesn’t mean it has the right to work in Kazakhstan. Quoted by RBC and Bits.media, it insisted:

“Even if a platform is considered a global leader, it must be authorized to operate within the jurisdiction of the republic.”

The authority admitted it does not maintain a dedicated blacklist of illegal crypto service providers and urged users to check the status of each individual company through its official public register.

The latter currently lists 30 companies offering services related to digital assets. Among them are some other prominent names in the industry, like Bybit and Binance, through its local subsidiary, which hold AFSA licenses.

Kazakhstan is cracking down on illegal crypto exchange services

Already a mining hotspot in Central Asia, Kazakhstan has been making efforts lately to establish itself as a crypto hub in the wider Eurasian region.

While the government in Astana is trying to liberalize the market, it is also taking measures to clamp down on illegal activities, including in trading.

According to Kazakhstan’s Financial Monitoring Agency (AFM), nearly two dozen illegal crypto exchanges were closed down over the past year. Hundreds of such businesses have been dismantled in previous periods.

On Wednesday, the body shared details about its investigation into what has been described as “the largest shadow crypto service in the Commonwealth of Independent States,” the RAKS Exchange.

The financial intelligence unit said the platform facilitated transactions worth over $224 million for more than 200 drug shops operating in Kazakhstan, Russia, Ukraine, and Moldova.

Quoted by Tengrinews.kz, the AFM revealed its specialists analyzed over 4,000 crypto wallets linked to drug trafficking and activities on darknet marketplaces.

When Kazakhstan’s financial and law enforcement authorities busted the exchange in September 2025, they froze 9.7 million USDT of its assets, as reported by Cryptopolitan. The watchdog now announced, 3.2 million Tether have been already confiscated.

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