Kazakhstan Court Targets Unlicensed Crypto Exchanges

The legal action follows a protracted enforcement campaign by the Astana Financial Services Authority (AFSA), which began issuing warnings to over 20 platforms as early as 2025. While the court initially included LBank in the proceedings, the exchange was removed after independently terminating its services for users within the jurisdiction. The remaining six operators face a combined legal bill of approximately 1.995 million Kazakhstani tenge.

Regulators argue that unlicensed exchanges create an uneven playing field by bypassing compliance costs associated with mandatory anti-money laundering and counterterrorist financing measures. According to AFSA chief executive Evgeniya Bogdanova, the court order serves as a final step after multiple platforms failed to heed warnings regarding licensing requirements. Beyond the six sanctioned firms, nine other platforms voluntarily restricted their services, while seven have signaled an intent to pursue legal authorization. This move aligns with broader national efforts in Kazakhstan, which has already blocked access to more than 1,100 unlicensed crypto entities to protect consumers from the risks of unregulated asset custody and dispute resolution.