Registration of a Cryptocurrency Company in Astana IFC, Kazakhstan

The country offers a transparent legal framework, a digital economic landscape, and accessible resources that attract international investors with an eye on the cryptocurrency sector's potential within the Republic. Nevertheless, much like any investment endeavor, embarking on a cryptocurrency startup in Kazakhstan necessitates a comprehensive understanding of the inherent risks linked to cryptocurrencies and digital mining, as well as the established regulations and constraints.

Cryptocurrency circulation in Kazakhstan

The main thing that potential investors should take into account is that the issue and circulation of unsecured digital assets is possible only on the territory of the Astana International Financial Center. It is prohibited in the rest of the territory of Kazakhstan.

Now let's take a closer look at the regulatory framework that governs secured and unsecured digital assets.

Secured and Unsecured Digital Assets

Kazakhstan permits transactions involving both secured and unsecured digital assets.

Secured digital assets

Assets that possess tangible value or an assured value base:

• Bitcoin
• Ethereum

They carry a tangible market value and can function as mediums of exchange.

Unsecured digital assets

Assets lacking a concrete foundation or guaranteed value.

• Tokens issued through Initial Coin Offerings (ICOs) in Kazakhstan.

Recently, Kazakhstan has emerged as an enticing destination for cryptocurrency transactions. The government has orchestrated several initiatives aimed at stimulating the cryptocurrency industry's growth. Several pivotal factors contributing to this progress encompass:

As earlier noted, the government ratified the Law on Digital Assets in 2020, signifying its commitment to overseeing the digital asset market. This legislation delineates the legal status and prerequisites for both secured and unsecured digital assets, as well as issuers and cryptocurrency exchanges. Continuous modernization of the legislative framework is evident, exemplified by the introduction of a new law in April 2023. This law mandates that cryptocurrency exchanges, both local and foreign, obtain a cryptocurrency license to operate in Astana (IFC in Kazakhstan).

Kazakhstan's allure to cryptocurrency miners lies in its comparatively lower electricity costs and the well-developed mining infrastructure.

Kazakhstan is actively cultivating its technological infrastructure, with a specific focus on blockchain centers and innovation clusters. This proactive approach has garnered interest from foreign investors aiming to establish cryptocurrency enterprises in Kazakhstan's free economic zone. These blockchain centers serve as specialized platforms for the incubation and implementation of blockchain technologies, providing a growth for a variety of innovative projects. Additionally, collaboration between innovation clusters and universities facilitates the growth and advancement of young companies and startups in Kazakhstan.

Why are Investors drawn to registering cryptocurrency companies at the Astana IFC

Establishing a cryptocurrency company

1. Document Preparation:
   1. Constituent documents.
   2. A comprehensive business plan.
   3. Financial status and forecasts.
   4. Company management structure.
   5. Evidence confirming sources of income.
   6. Registered address.
2. Application Submission
3. Administrative Fees
4. Bank Account Opening in Kazakhstan
5. License Application for Crypto Exchange in the AIFC:
   1. Appoint a senior executive director, financial director, and technical director.
   2. Designate an AML Compliance Officer who is a resident of the country.