Centralized exchange in Kazakhstan

AIFC Financial Services Authority (AFSA): The independent regulator of the AIFC, responsible for licensing, supervision, and enforcement of financial services, including virtual asset activities.

License Type: Operating a Digital Asset Trading Facility (DATF).

Key Services: Matching orders, trade execution, offering a trading platform for various digital assets (utility tokens, security tokens, potentially payment tokens/cryptocurrencies).

License Type: Providing Custodian (Digital Assets) services.

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

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.

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).

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.

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):

Adherence to AIFC AML Rules, which are aligned with FATF (Financial Action Task Force) recommendations.

Astana Financial Services Authority (AFSA): The independent regulator for the AIFC.

AIFC Digital Asset Business Rules (DABR): Contains specific requirements for firms involved in digital asset activities.

AIFC Conduct of Business Rules (COB): General rules for how firms must conduct business with clients.

AIFC Prudential Rules (PRU): Rules related to capital, risk management, and financial soundness.

AIFC Anti-Money Laundering and Counter-Terrorist Financing Rules (AML): Mandatory for all regulated firms.

Mandatory Segregation: Licensed custodians are required to segregate client digital assets from their own proprietary assets. These assets must be clearly identifiable as client assets.

Trust Accounts/Safeguarding: Assets must be held in a manner that protects clients' interests, typically implying a trust or fiduciary arrangement where client assets are not subject to the custodian's creditors in case of insolvency.

Private Key Management: Detailed policies and procedures for the generation, storage, backup, and recovery of private keys are mandatory. This strongly implies the use of offline (cold) storage for a significant portion of client assets, especially those not actively traded.

Operational Resilience: Firms must demonstrate operational resilience, including contingency plans for security breaches or loss of assets.

Capital Requirements: Licensed firms must meet specific minimum capital requirements (financial resources) based on the nature and scale of their business, as detailed in the Prudential Rules. This serves as a buffer against operational losses.

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.

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.

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).

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).

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.