Kazakhstan’s bipartite regulatory environment for digital assets includes the following key aspects:

• AIFC Regulation: Digital Asset Service Providers are allowed only in AIFC.
• Minimal Capital Requirements: Varying from $10,000 to $250,000 based on the nature of the activity, these requirements ensure that entities are financially robust.
• Crypto Exchanges: Operating within the AIFC involves stringent licensing protocols, including an authorisation fee of $70,000 and an annual fee of $35,000, overseen by the Astana Financial Services Authority (AFSA).

In Kazakhstan, digital assets are classified into two types: secured and unsecured. The issuance and circulation of unsecured digital assets are prohibited throughout the Republic of Kazakhstan, except within the AIFC territory. Conversely, the issuance of digital assets in the AIFC remains unregulated.

Crypto mining in Kazakhstan is regulated and licensed, with the country offering two distinct types of licences. However, the AIFC does not provide special rules for mining activities within its jurisdiction.

Kazakhstan has yet to introduce regulation specifically addressing DAOs, indicating an area of potential future development.

Our comprehensive report delves into Kazakhstan’s regulatory framework for crypto assets, highlighting:

1. Business Analysis

The report delves deeper into Kazakhstan’s crypto asset regulatory framework, providing a comprehensive guide for crypto businesses. It examines essential aspects, such as

• Licensing Procedures: A detailed exploration of the procedural landscape for obtaining licenses for crypto-related activities. Our insights are enriched by firsthand experiences with the application process and associated requirements.
• Banking for VASPs: Insights into the AIFC’s pioneering efforts to facilitate Virtual Asset Service Providers’ (VASPs) banking relationships. We offer a unique perspective on overcoming common challenges in banking access for crypto businesses.
• Mining Regulation: Examination of the regulatory frameworks for crypto mining companies in Kazakhstan, including the licensing process and operational compliance within the country’s jurisdiction.

2. Compliance Guidance

Emphasising the importance of thorough preparation and compliance, the report offers detailed insights into compliance requirements, such as

• AML Regulations: Insights into AML and compliance frameworks, highlighting the importance of adherence to both national and international standards in the prevention of financial crimes.
• Taxation: Overview of taxation and financial planning considerations for crypto businesses operating within the jurisdiction, reflecting the need for strategic operational structuring.

3. Launch Roadmaps

Actionable steps and up-to-date strategies for establishing and operating your crypto project in Kazakhstan’s regulatory environment, ensuring a smooth and compliant launch.

4. Expert Insights

Perspectives from industry experts with a deep understanding of global regulatory environments, offering guidance to navigate the complexities of Kazakhstan’s crypto regulations.

Kazakhstan’s approach, particularly the innovative environment of the AIFC, offers a compelling jurisdiction for crypto businesses. The structured regulatory framework, coupled with the AIFC’s efforts to streamline banking for VASPs, provides fertile ground for digital asset ventures looking for a regulated, yet dynamic, ecosystem.

D&A Partners brings a wealth of experience in navigating global crypto regulations. Our detailed reports and comprehensive crypto regulation map, including an in-depth look at Kazakhstan, provide valuable insights into local crypto regulations.

With years of experience in setting up and operating FinTech enterprises, issuing digital tokens, and navigating crypto transactions in the region, we possess critical insights into local crypto regulations. This allows us to effectively guide you through every step of establishing your business in Kazakhstan.

For businesses and investors navigating Kazakhstan’s crypto asset sector, consider the following practical tips:

• VASPs Operations: Understand that VASPs are permitted to operate only within the AIFC jurisdiction. This exclusivity makes the AIFC an essential hub for businesses looking to provide virtual asset services in or from Kazakhstan. Ensure your VASP activities are aligned with AIFC regulations and capitalise on the specialised ecosystem it offers.
• Innovative Banking Guidelines for VASPs: A standout feature of the AIFC is its issuance of guidelines to facilitate Virtual Asset Service Providers in opening bank accounts with local banks.