Remote VASP serving residents in Kazakhstan

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.

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

License Type: Providing Custodian (Digital Assets) services.

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

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.

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.

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

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.

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.

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

Requirement: While OFAC sanctions are primarily U.S. law, their extra-territorial reach is significant. Any VASP that deals with U.S. persons (citizens, residents, entities), uses U.S. financial systems (e.g., for USD transactions), or handles U.S.-origin technology or services, falls under OFAC's jurisdiction. Given the global nature of crypto, avoiding a U.S. nexus can be challenging.

Requirement: Similar to OFAC, EU sanctions have extra-territorial implications for any entity or individual doing business with EU persons, entities, or utilizing EU financial infrastructure. Many international crypto exchanges and platforms have an EU presence or serve EU customers.

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.

Entity Targeted: Numerous unregistered cryptocurrency mining farms operated by various individuals and organizations across the country. Violation Type: Unlicensed business activity, illegal electricity consumption, tax evasion, sometimes money laundering, and operating outside the legal framework for crypto mining. Outcome: Shut down of operations, seizure of equipment (hundreds of thousands of mining devices), criminal charges against operators, and significant administrative fines. While individual penalty amounts for each entity are not publicly disclosed, the total economic impact and asset seizures were substantial. For instance, in 2022 alone, the AFM reported stopping 51 illegal mining farms and confiscating equipment worth billions of tenge.