Blockchain and cryptocurrencies have been a true breakthrough for the global economy. Many are pinning their hopes on them, the global cryptocurrency market is growing quite fast - as early as 2023, it reached two trillion dollars, and the growth continues.
Kazakhstan is not left out of this process either, especially since cryptocurrency projects here enjoy state support.
The law on digital assets, designed to regulate cryptocurrency transactions, came into force here in 2020, but the legislative framework through which cryptocurrencies are regulated in Kazakhstan does not remain unchanged.
According to the new law, effective from 2023, each crypto exchange is required to obtain a cryptocurrency license in order to conduct legal activities.
The Astana International Financial Center (AIFC), otherwise known as the Astana Financial Services Authority (AFSA), is located in the capital of the Republic of Kazakhstan, Nur Sultan. The purpose of his work, which began in 2018, is to attract firms and investors from other countries, and he also cares about the development of financial services. One of the aspects of the AIFC regulator's activities is the implementation of regulatory legal acts regulating, among other things, the licensing of crypto exchanges. The following cryptocurrency companies can obtain a license from this organization:
The licensing of custodial services dealing with the storage of digital assets is also underway.
There are many reasons why registering a crypto exchange in the AIFC seems to be the most attractive option for investors.
AFSA provides investors intending to open a business in the field of cryptocurrency in the free zone of the Republic of Kazakhstan with access to the most modern technological platforms, to storage systems that guarantee the security of assets – and this is another reason to issue a license for cryptocurrency operations in this organization.
The AIFC imposes certain requirements on the crypto business in Kazakhstan, without which it is impossible to obtain a license.:
The Company is obligated to provide accurate and detailed information about the company's transactions, clients, and operations.
The state, state-owned companies and their branches may own no more than 50% of the authorized capital.
AML/CFT measures against terrorist financing and money laundering must be respected.
Audit and compliance are required – transaction verification, reporting, and security control.
Certain requirements are also imposed on the company's technical infrastructure – it must comply with the standards of conducting cryptocurrency transactions and security.
When considering how to open a script exchange in the AIFC, it should be noted that the procedure here is somewhat simpler than in other jurisdictions, however, registration of a cryptocurrency company will take some time and require some effort. The following steps must be taken:
It is necessary that three directors be appointed in the company – senior executive, technical and financial, and each of them must have proof of their qualifications and experience.
Obtaining a cryptocurrency license in Kazakhstan is not such an easy task as it may seem at first glance. The AFSA imposes quite strict requirements on crypto business owners – they must provide a detailed model and business plan, and confirm their own experience in the financial sector.
Drafting documents is also important – if any errors are found in their design, you will not be able to obtain a license.
That's why legal support for a crypto business is not a luxury, but a necessity. Such assistance in Kazakhstan is provided by the Law Consult Group, a company that enjoys well–deserved trust, as it has solid experience in the field of licensing the crypto business.
Thanks to such assistance, the registration time is significantly reduced, and the risk of license denial is reduced. Upon completion of the procedure, the legal support of crypto exchanges continues – the Law Consult Group helps companies in preparing reports and contracts, as well as with compliance.
