Kazakhstan Blockchain Chief slams Binance.com after 130 closures

This coincides with data showing that over 8,000 criminal cases in Kazakhstan each quarter are related to the global Binance platform.

A day earlier, Kazakhstan's Financial Monitoring Agency cut off access to 130 unlicensed crypto exchanges. Officials present the move as enforcement against illegal operators, yet Karashev highlights an inconsistency.

Market leader without compliance

I assess the closure of 130 illegal crypto platforms as a positive step. This demonstrates the state's intention to enforce the law, which explicitly establishes that only licensed crypto exchanges can operate in the Republic of Kazakhstan. However, the largest and most active crypto exchange in Kazakhstan, Binance.com, continues to operate without any restrictions, despite not having a license,

Karashev told our publication.

The association head pointed out that although BNKZ Technologies Limited operates with an AIFC license under the Binance brand in Kazakhstan, Binance.com itself remains registered in offshore territories and lacks legal recognition within the country.

Ignored statistics

Chainalysis data reveals that 45% of Kazakhstan's crypto users relied on Binance.com throughout 2024. Transaction volume from Kazakhstani accounts on the platform totaled $10–11 billion over the year.

President Kassym-Jomart Tokayev addressed this disparity in early 2025 during an extended government session, noting that licensed AIFC exchanges captured just 5% of digital asset activity, whereas Binance.com commanded 45%.

This means that conscientious licensed platforms are losing their customer base, and the market remains artificially stagnant,

Karashev noted.

8,000 criminal cases in three months

Even more troubling figures relate to fraud and money mule operations. Unofficial estimates link approximately 8,000 criminal investigations in Kazakhstan during the first quarter of 2025 to online fraud schemes where Binance.com served as the primary vehicle.

The pattern is consistent: criminals recruit ordinary citizens (known as “drops”), register Binance.com accounts under their identities, then exploit those accounts for narcotics distribution (Article 297 of Kazakhstan's Criminal Code), proceeds laundering, and cyber fraud (Article 190).

Transactions related to darknet and illegal activities are recorded through Binance.com. Materials from specific criminal cases involve transfers of tens of millions of dollars, including individual transactions exceeding half a million dollars,

Karashev emphasized.

Who is responsible?

Wrapping up his remarks, Karashev posed a direct challenge: “Who will take responsibility for the fact that the largest unlicensed crypto exchange continues to operate unhindered in Kazakhstan?”

As of this writing, neither Binance representatives nor Kazakhstan's financial regulators have addressed the association chairman's claims.

Reference: Dauren Karashev heads the National Blockchain Association of Kazakhstan, an industry organization uniting licensed participants in the country's crypto sector.