The establishment of a cryptocurrency company within the jurisdiction of the Astana International Financial Center (AIFC) in Kazakhstan is gaining substantial popularity. Kazakhstan envisions itself as a key player in the global cryptocurrency landscape and has undertaken significant measures to foster this ambition. The Republic of Kazakhstan actively supports the growth of blockchain technologies and the initiation of cryptocurrency ventures. In 2020, the Republic of Kazakhstan introduced the Law on Digital Assets, a legislation designed to govern cryptocurrency operations.
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:
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.
These tokens represent fractional rights to utilize platforms or services but lack immediate intrinsic value.
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:
Regulation and Licensing:
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).
Energy-Efficient Mining:
Kazakhstan's allure to cryptocurrency miners lies in its comparatively lower electricity costs and the well-developed mining infrastructure.
Innovative Technological 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.
Today, the Republic of Kazakhstan is on the forefront of the global cryptocurrency business. It's important to acknowledge, however, that cryptocurrency exchanges and transactions within Kazakhstan are subject to regulations pertaining to anti-money laundering (AML) and counteracting the financing of prohibited activities (CTF). These regulations dictate that cryptocurrency exchanges and platforms adhere to customer due diligence protocols, report suspicious transactions, and comply with a spectrum of compliance measures. Moreover, cryptocurrency transactions are subject to taxation within the country.
Why are Investors drawn to registering cryptocurrency companies at the Astana IFC
Legal Protection
Attaining a crypto license in the AIFC in Kazakhstan furnishes comprehensive legal protection for cryptocurrency activities. This pivotal license facilitates engagement in crypto-related activities in alignment with the prevailing laws of Kazakhstan, effectively safeguarding its bearer from potential risks that might otherwise emerge without such formal recognition.
Reputation
The AIFC commands a stature as one of the premier financial centers within Central Asia. Acquiring a license for a crypto exchange through the AIFC can significantly elevate the reputation of your cryptocurrency venture, instilling greater confidence among clients and investors hailing from diverse global regions.
Simplicity and Expediency of Process
The streamlined regulatory procedures, coupled with expedited timelines, sets the stage for a quicker establishment of cryptocurrency operations compared to certain other jurisdictions.
Establishing a cryptocurrency company
- Document Preparation:
- Constituent documents.
- A comprehensive business plan.
- Financial status and forecasts.
- Company management structure.
- Evidence confirming sources of income.
- Registered address.
- Application Submission
- Administrative Fees
- Bank Account Opening in Kazakhstan
- License Application for Crypto Exchange in the AIFC:
- Appoint a senior executive director, financial director, and technical director.
- Designate an AML Compliance Officer who is a resident of the country.
In conclusion, we note that the interest of investors in cryptocurrency mining in Kazakhstan is growing rapidly. The government continues to develop the infrastructure and legal framework for launching crypto startups in Astana. YB Case specialists are ready to provide comprehensive guidance and support for the process of registering a cryptocurrency company in the AIFC of Kazakhstan.
