Crypto License in Kazakhstan

Yes, foreign companies can establish a legal entity within the AIFC and apply for a crypto license. Kazakhstan’s regulations are designed to attract global businesses, and there are no residency requirements for directors or shareholders. This makes Kazakhstan a welcoming jurisdiction for international cryptocurrency firms.

Kazakhstan offers two main types of crypto licenses:

1. Operating a Digital Asset Trading Facility: This license allows companies to run cryptocurrency exchanges and trading platforms.
2. Providing Custodial Wallet Services: This license permits firms to offer secure storage and management of digital assets for their clients.

The process typically takes between 6 to 7 months. This timeframe includes document preparation, company registration, application submission, and regulatory approval. Companies must ensure that all required documents are in order and meet the AFSA’s compliance standards to avoid delays.

Applicants must have a minimum share capital that is sufficient to cover six months of operating expenses. This financial requirement demonstrates that the company has the necessary resources to maintain stable operations and fulfill regulatory obligations.

To maintain a crypto license in Kazakhstan, companies must:

• Implement robust AML and CFT procedures.
• Establish thorough KYC processes to verify customer identities.
• Conduct regular cybersecurity audits to protect against hacking and fraud.
• Submit annual financial reports and undergo external audits. By adhering to these compliance measures, companies can maintain their licenses and operate with confidence in Kazakhstan’s well-regulated crypto environment.

Yes, companies operating under the AIFC framework benefit from significant tax advantages. These include exemptions from corporate income tax and property tax until January 1, 2066. This favorable tax regime is designed to encourage investment and stimulate the growth of Kazakhstan’s cryptocurrency industry.

Licensed crypto companies must submit periodic reports to the AFSA. This includes financial statements, compliance audits, and updates on key operational changes. Regular reporting ensures transparency and helps maintain the integrity of Kazakhstan’s cryptocurrency market.

Kazakhstan’s regulatory framework is considered one of the most transparent and stable in the region. The introduction of the Law on Digital Assets and the oversight provided by the AFSA ensure that crypto businesses have clear guidelines to follow. Additionally, the country’s long-term tax exemptions and simplified registration processes make it a more attractive option than many other jurisdictions.

Kazakhstan offers a range of support services for foreign companies. The AIFC has established a specialized Expat Centre that provides assistance with visas, work permits, and other administrative tasks. This makes it easier for international businesses to set up operations and navigate the regulatory environment.

If a company fails to comply with Kazakhstan’s crypto regulations, it risks losing its license. This can result in the inability to operate legally within the country. To avoid such issues, it is crucial for businesses to maintain strong compliance practices, submit accurate reports on time, and address any regulatory concerns promptly.