Crypto License in Kazakhstan
Professional assistance in obtaining a crypto license in Kazakhstan
Applying for a crypto license in Kazakhstan is a formal process that requires compliance with the country’s laws and statutes governing the use of virtual resources. The Astana Financial Services Authority (AFSA) oversees the regulatory framework for cryptocurrencies in Kazakhstan.
On July 5th, 2018, the Astana International Financial Centre (AIFC) was established as a financial center in Astana, Kazakhstan. Its main objectives are to attract investments and cater to clients from Asia, Europe, and the Middle East.
The AIFC comprises several entities. The AIFC Management Council sets the hub’s strategic direction, the AIFC Authority is in charge of developing and promoting the AIFC, the Astana Financial Services Authority (AFSA) regulates financial services, the AIFC Court has a legal system based on English law, the AIFC International Arbitration Centre handles disputes, and the AIFC Bureau for Continuing Professionals Development is responsible for developing human capital.
AIFC provides a favorable environment to attract Western markets, offering benefits such as a preferential tax regime, a common law framework, and simplified visa and labor regimes. Businesses interested in establishing a presence within the AIFC can submit an application form to AFSA.
Crypto businesses operating in Kazakhstan can benefit significantly from obtaining a cryptocurrency license. Kazakhstan’s regulatory framework for cryptocurrencies is overseen by the AFSA, which aims to create a favorable environment for the development of virtual resources. This section will explore the advantages of possessing a cryptocurrency license in Kazakhstan.
One of the main benefits of obtaining a crypto license in Kazakhstan is the ability to operate worldwide legally and comply with the country’s laws and statutes. This can help businesses build trust with customers and investors and mitigate legal risks and potential penalties or fines for non-compliance.
Access to a Growing Market
Kazakhstan is located at the intersection of Europe and Asia, making it an attractive location for businesses looking to expand their reach in these regions. Additionally, the country has a relatively high level of digital literacy. It actively promotes the development of a digital economy, providing businesses access to a growing market for virtual resources.
Access to Financial Services and Infrastructure
Obtaining a crypto license in Kazakhstan can provide businesses access to various economic services and infrastructure, including banking services, payment processing, and custody solutions. This can help businesses streamline their operations and reduce costs associated with accessing these services from third-party providers.
Access to the Astana International Financial Centre
Obtaining a crypto license can also provide businesses access to the Astana International Financial Centre (AIFC), a monetary hub located in the capital city of Nur-Sultan. The AIFC provides businesses with various monetary and legal services, including a court system based on English common law, making it an attractive location for multinational businesses looking to expand into the Central Asian region.
Obtaining a cryptocurrency license in Kazakhstan requires compliance with the country’s laws and statutes governing virtual resources. The Astana Financial Services Authority (AFSA) oversees the regulatory framework for cryptos.
- Establish a Legal Entity: To obtain a crypto license in Kazakhstan, the applicant must first establish a legal entity within the country and obtain a certificate of incorporation. The legal entity can be a limited liability company, joint-stock company, or partnership.
- Compliance with AML/CFT statutes: The applicant must comply with anti-money laundering (AML) and counter-terrorist financing (CFT) statutes. This includes implementing Know Your Customer (KYC) procedures, conducting customer due diligence, and reporting suspicious transactions to the AFSA.
- Detailed Application: The applicant must submit a detailed application to the AFSA, which includes data about the proposed business actions, compliance policies and procedures, risk management strategies, and economic projections.
- Cybersecurity Requirements: The applicant must have appropriate cybersecurity measures to protect against hacking, theft, and other cyber threats.
- Reporting and Auditing: The licensee must regularly report to the AFSA and undergo annual audits to ensure compliance with all applicable laws and statutes.
- Approval by AFSA: The AFSA will review the application and may request additional data or documentation before granting a license. The license may be subject to certain conditions, such as minimum capital conditions, adherence with AML/CFT statutes, and regular reporting to the AFSA.
Crypto License Registration in Kazakhstan packages
- All services from the Advanced package
- Annual report
- Accounting for 1 year
- Local office search and registration
- KYC/KYT integration and provider principle adaptation
- Full turnkey company formation
- Set of corporate documents
- Full set of policies for license application
- License application assistance
- Local address registration
- Corporate account opening assistance
- Local AML Officer employment
- Company formation
- Basic Corporate documents
- Set of standard policies for license application
- License application assistance
Cryptocurrency Licensing Legislation in Kazakhstan
The regulatory framework for cryptocurrencies in Kazakhstan is aimed at creating a favorable environment for the development of virtual resources while ensuring the protection of investors and compliance with international standards. Here are some critical aspects of crypto licensing legislation in Kazakhstan.
- Cryptocurrency License Types: The AFSA issues many types of crypto licenses in Kazakhstan, but the most popular are a license for cryptocurrency exchange actions and a license for crypto mining actions. The licenses are issued for a term of up to five years.
- Application Process: To obtain a crypto license in Kazakhstan, the applicant must establish a legal entity within the country and obtain a certificate of incorporation. The applicant must then submit a detailed application to the AFSA, which includes data about the proposed business actions, compliance policies and procedures, risk management strategies, and monetary projections.
An Authorised Market Institution must hold the following minimum capital: An amount equal to 6 months’ operational expenses; plus, unless the AFSA directs otherwise, an additional amount of up to 6 months of operating expenses. (Starting from $10000)
- AML/CFT Procedures: The applicant is required to adhere to the statutes pertaining to anti-money laundering (AML) and counter-terrorist financing (CFT). This entails the implementation of Know Your Customer (KYC) protocols, performing customer due diligence, and promptly reporting any suspicious transactions to the AFSA.
- Cybersecurity: The applicant is obligated to possess adequate cybersecurity protocols in place to safeguard against hacking, theft, and other cyber-related risks.
- Reporting: The licensee is required to consistently provide reports to the AFSA and undergo annual audits as a means to verify compliance with relevant laws and regulations.
- Penalties and Fines: Non-compliance with cryptocurrency licensing legislation may result in penalties, fines, or license revocation.
Regulation of Cryptocurrency Exchanges in Kazakhstan
The Astana Financial Services Authority (AFSA) oversees the regulation of cryptocurrency exchanges in Kazakhstan.
Crypto exchanges in Kazakhstan must obtain a license from the AFSA to operate legally. The licensing process involves establishing a legal entity within the country, meeting minimum capital requirements, complying with anti-money laundering (AML) and counter-terrorist financing (CFT) statutes, and submitting a detailed application to the AFSA. Once granted, the licensee must comply with all applicable laws and statutes, including regular reporting and auditing.
Taxation of Cryptocurrencies in Kazakhstan
The Tax Code governs the tax regime within the AIFC except for certain deletions outlined in Article 6 of the Constitutional Law. These deletions refer to 0% tax benefits available to AIFC participants:
- Corporate income tax or value-added tax
(CIT or VAT) applies to income earned from the provision of financial services within the AIFC, provided that the service provider holds a license from the AIFC Committee for Financial Services Regulations.
- Corporate income tax (CIT) is levied on income earned from legal, auditing, accounting, and consulting services provided to AIFC bodies and on income earned by AIFC participants providing financial services, as listed in paragraph 3 of Article 6 of the Constitutional Law.
To be exempt from Corporate income tax (CIT), AIFC participants must maintain separate records in accordance with the Regulations on Keeping Separate Accounting of Income Subject to Exemption of Corporate Income Tax and Subject to Taxation, as well as Expenses Subject to Allocation to Deductions by the Participants of AIFC.
- AIFC participants who provide financial and support services are subject to property tax and land tax on objects located within the AIFC, as listed in paragraphs 3 and 4 of Article 6 of the Constitutional Law.
- Foreign individuals employed by an AIFC participant providing financial and support services are not subject to individual income tax on income earned from activities within the AIFC under an employment contract concluded with an AIFC participant. The list of financial and support services AIFC participants provide is specified in paragraphs 3 and 4 of Article 6 of the Constitutional Law.
FAQ about crypto license in Kazakhstan
Is cryptocurrency legal in Kazakhstan?
- Cryptocurrency is legal in Kazakhstan. The country has a regulatory framework overseen by the Astana Financial Services Authority (AFSA)
How to get a cryptocurrency license in Kazakhstan?
- To obtain a cryptocurrency license in Kazakhstan, one must establish a legal entity within the country, meet minimum capital requirements, comply with anti-money laundering and counter-terrorist financing statutes, and submit a detailed application to the AFSA.
What license is required to sell cryptocurrency in Kazakhstan?
- A license for cryptocurrency exchange actions is required to sell cryptocurrency in Kazakhstan. This license is issued by the AFSA. It requires compliance with anti-money laundering (AML) and counter-terrorist financing (CFT) statutes, minimum capital requirements, and other applicable laws and statutes.
How much does a cryptocurrency license cost in Kazakhstan?
- The government fee paid to the AFSA regulator when applying for a cryptocurrency license in Kazakhstan is 75,000 USD. These are all the government fees the company pays directly to the regulator. Then, the annual renewal of the license will cost 38,000 USD. However, applicants must have a minimum capital required amount equal to 6 months’ operational expenses; unless the AFSA directs otherwise, an additional amount of up to 6 months of operating expenses. (Starting from $10000)
How long does it take to obtain a crypto license in Kazakhstan?
- The time it takes to obtain a crypto license in Kazakhstan may vary depending on the complexity of the application and the extent of the required due diligence, but typically it can take 5-7 months.
Can foreign individuals or companies apply for a crypto license in Kazakhstan?
- Foreign individuals and companies can apply for a crypto license in Kazakhstan. Still, they must comply with all relevant laws and regulations, including capital requirements and anti-money laundering.