Crypto ATM / kiosk operator in Kazakhstan

License Type: Providing Payment Services Provider (PSP) services.

Key Services: Fiat-to-crypto on/off-ramps, crypto remittances, facilitating payments using stablecoins or other digital assets.

Legal Form & Local Presence:

Must be incorporated or established as a legal entity within the AIFC.

Maintain a physical office presence in the AIFC.

Have key personnel (e.g., CEO, Compliance Officer) primarily based in the AIFC.

Base Capital: This varies significantly based on the type and scope of the license.

Payment Services Provider (PSP): Varies depending on the specific payment services and tiers of authorization, ranging from USD 50,000 to USD 200,000 (or KZT equivalent) for higher-tier PSPs.

Digital Asset Trading Facility (DATF): Typically USD 300,000 (or KZT equivalent) for non-dealing DATFs. If the DATF also acts as a Dealer, higher capital may be required.

Custodian (Digital Assets): Typically USD 300,000 (or KZT equivalent).

Ongoing Capital: Firms must maintain capital sufficient to cover their regulatory capital requirements (base capital plus operational risk requirements) at all times.

AML/KYC (Anti-Money Laundering / Know Your Customer):

A. UN Sanctions:

Compliance: VASPs must screen customers and transactions against the UN Security Council Consolidated List (individuals and entities associated with terrorism and proliferation of weapons of mass destruction, and other sanction programs).

B. OFAC (U.S.) Sanctions:

Compliance: VASPs must screen against OFAC's Specially Designated Nationals And Blocked Persons List (SDN List) and other relevant sanctions lists specific to programs (e.g., Russia/Ukraine, Iran, North Korea).

C. EU Sanctions:

A. National Legislation:

Law of the Republic of Kazakhstan "On Counteracting Legalization (Laundering) of Criminal Proceeds and Financing of Terrorism" (No. 191-IV dated August 28, 2009, as amended): This is the primary AML/CFT law. It designates the Financial Monitoring Agency (FMA) as the competent authority and outlines the obligations of "financial organizations" and other reporting entities (which, under FATF standards, includes VASPs). It requires reporting entities to identify customers, monitor transactions, and report suspicious activities, including those related to terrorism financing and proliferation, which often involves sanctions screening.

Financial Monitoring Agency (FMA): The FMA is Kazakhstan's Financial Intelligence Unit (FIU) and the primary body responsible for enforcing AML/CFT laws, including monitoring compliance with international sanctions.

Law of the Republic of Kazakhstan "On Counteracting Legalization (Laundering) of Criminal Proceeds and Financing of Terrorism" (No. 191-IV dated August 28, 2009, as amended): This is the primary AML/CFT law. It designates the Financial Monitoring Agency (FMA) as the competent authority and outlines the obligations of "financial organizations" and other reporting entities (which, under FATF standards, includes VASPs). It requires reporting entities to identify customers, monitor transactions, and report suspicious activities, including those related to terrorism financing and proliferation, which often involves sanctions screening.

B. Astana International Financial Centre (AIFC):

Specific Regime: The AIFC operates under a separate legal system based on English common law, with its own independent financial regulator, the AIFC Financial Services Authority (AFSA). The AIFC is a key hub for crypto regulation in Kazakhstan.

AFM: Activities of a large cryptocurrency exchange in Almaty were suppressed by law enforcement agencies (This specifically refers to an operation in February 2023, though penalty details aren't itemized.)

Kazinform: Financial Monitoring Agency blocks 138 websites for illegal online casinos, cryptocurrencies (This article from Jan 2024 highlights ongoing efforts against illegal online platforms, including those related to cryptocurrencies, demonstrating continuous enforcement.)

Entity Targeted: Operators and websites of unregistered cryptocurrency exchanges and peer-to-peer trading platforms. Violation Type: Unlicensed financial activity, facilitation of illegal financial operations (e.g., fraud, money laundering), violation of financial regulations. Penalty Amount: Not specified as a direct fine in publicly available reports. Outcome: Blocking of website access, criminal charges against individuals involved, seizure of funds (if traceable).

Outcome: Websites were blocked, and criminal investigations were launched against individuals involved in operating these platforms. This reinforces Kazakhstan's stance against any crypto trading outside the regulated AIFC framework.