DeFi protocol frontend 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).

Definition: A person who provides a facility where multiple third-party buying and selling interests in Digital Assets are able to interact in the facility in a way that results in a Contract for sale or purchase. This broadly covers cryptocurrency exchanges.

Broker (Digital Assets): Acting as an agent for clients in buying and selling digital assets.

Dealer (Digital Assets): Dealing in digital assets as a principal, either buying or selling for one's own account.

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.

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.

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.

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

Financial Monitoring Agency of the Republic of Kazakhstan: The national financial intelligence unit (FIU) for anti-money laundering and counter-terrorist financing (AML/CFT) oversight, which works in coordination with AFSA for AIFC entities.

Requirement: As a UN member state, Kazakhstan is obligated to implement all UN Security Council resolutions imposing sanctions. These are universally binding.

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).

Evidence fact kz.aml.compliance-vasps-must-screen-against-eu not found (may have been renamed).

Evidence fact kz.aml.law-of-the-republic-of-28-2009-191-iv not found (may have been renamed).

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.

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.)

Outcome: Arrests, criminal prosecutions, and convictions of perpetrators, aiming to recover assets for victims. These actions highlight the regulatory focus on consumer protection and combating crypto-related scams.