AFSA Closes 2024 with Record Growth, Strengthening AIFC’s Position as a Global Financial Hub
The Astana Financial Services Authority (AFSA) has closed 2024 with strong results, further showing that AIFC’s regulations are helping transform the Centre into an attractive destination for fund managers, FinTech and capital markets players.
Registration
AFSA welcomed 1,174 new participant companies, nearly doubling the 600 registrations compared to 2023. As a result, the total number of registered companies within the AIFC has surpassed 3,500, representing 85 countries, including the USA, UK, China, Türkiye, and Singapore.
AFSA is constantly working to further digitalise its registration services. In 2024, we introduced digital post-registration services, allowing companies to register share transfers and modify or reduce their shared capital online. Previously, these applications had to be submitted offline. With the new online system, processing times have significantly improved, reducing from 7-10 business days to just 1-5 business days, depending on the accuracy and completeness of the submitted information.
Authorisation
In 2024, AFSA issued licences to 49 financial service providers within the AIFC—double the number from 2023—bringing the total to 126 licensed financial companies. Additionally, 21 ancillary service providers received licenses, increasing the total number of licenced consultants to over 130.
Over one-third of authorised companies have received a fund management licence, reflecting a strong interest in this sector within the AIFC. Furthermore, there have been three successful cases of migration from the sandbox environment to the full regulatory regime, illustrating a clear pathway for the graduation of companies from the FinTech Lab to full authorisation.
In 2024 AFSA recognised 12 jurisdictions as equivalent. The list includes Georgia, Qatar Financial Centre, Dubai International Financial Centre, Abu Dhabi Global Market, United Kingdom, United States of America, Singapore, European Member States, Switzerland, Australia, Malaysia and Hong Kong. This recognition streamlines the process for firms applying to be recognised as Foreign Fund Managers in the AIFC by eliminating the need for a gap analysis, thereby expediting the application process.
Asset and Fund Management
The fund and asset management industry within the AIFC is one of the fastest-growing sectors. Over the past 3.5 years, assets under management have surged by 865%, growing from $115 million in early 2021 to over $1.1 billion by end of 2024.
Similarly, the number of funds registered in the AIFC went up from 42 at the beginning of 2024 to 101 at the end of 2024, and the number of fund and asset managers from 46 to 65. The majority focused on hedge funds[1], followed by private equity funds[2], venture capital funds, and other categories such as Real Estate Trust Funds[3], fixed-income, commodity, crypto, credit and umbrella funds[4].
2024 was marked by several significant “firsts”: AFSA registered the first non-exempt fund for retail investors and the first Shariah-compliant fund – ITS Shariah ETF Fund OEIC PLC, as well as the first umbrella fund in AIFC – Fonte Emerging Markets Umbrella Fund OEIC Limited. AFSA also allowed listing of exempt funds[5] on an Authorised Investment Exchange, with 3 exempt funds listed on Astana International Exchange.
FinTech and Digital Assets
In 2024, four new digital asset exchanges were registered within the FinTech Lab regulatory sandbox, while Binance (BN KZ Technologies Limited) and Bybit (Bybit Limited) successfully transitioned from the FinTech Lab sandbox to the full regulatory status. Among the global exchanges WhiteBIT – one of Europe’s biggest cryptoexchanges – was a new arrival.
The trading volume of digital asset service providers (DASPs) operating within the AIFC was over $1.4 billion, with a client base growing to over 140,000 individuals. This is a significant increase from 2023, when the trading volume amounted to $324 million, and the client base stood at 53,000.
JSC QazPost, Kazakhstan’s national postal operator, was authorised to conduct fiat transactions with digital assets after it was officially added to the list of organisations permitted to provide these services alongside commercial banks (second-tier banks – STBs) in Kazakhstan.
Capital Markets
In 2024 alone, AIX achieved a major milestone with 140 new listings, bringing the total number of securities traded on the exchange to more than 250. This reflects the increasing interest from issuers in listing on AIX, reinforcing its role as a key listing venue for both local and international companies. This growth is driven by a robust market infrastructure and a regulatory framework that aligns with global standards.
International Trading System Ltd. (ITS), the first company that received a license from AFSA to operate a Multilateral Trading Platform (MTF), resumed its operations during 2024 after establishing an AIFC-based and AFSA-authorised clearing and settlement infrastructure. Key accomplishments include adding around 3,000 tradable securities such as shares, depository receipts, as well as Exchange-Traded Funds[6], with a primary listing on the leading global exchanges such as NYSE and NASDAQ; the launch of the first AIFC non-exempt fund listed on AIX and admitted to trading on ITS (ITS World ETF)[7], reaching a total trading volume of USD 200 million with the highest daily turnover of $16 million. ITS obtained Qualified Intermediary (QI) status[8] from the US Internal Revenue Service (IRS), allowing reduced tax rates on income from US-registered securities.
Policy and Regulatory Developments
In 2024, a regulatory foundation was developed for the following areas: regulation of family offices, corporate treasury centers, venture studios, and the issuance of green and sustainability-linked bonds and sukuks. Amendments were also made to the AIFC regulations to oversee tokenised commodities and tokenised investments, to the Rules for multilateral and organised trading facilities, while acts governing legal entities were revised.
We also introduced amendments to Anti-Money Laundering, Terrorist Financing and Sanctions framework and additional amendments were provided to Insolvency regulations. AFSA also introduced enhancements to Derivatives, Asset Management and Credit Rating Agencies frameworks.
Additionally, we presented a simplified regulatory framework for low-risk financial services firms in the AIFC, developed guidance on voluntary ESG disclosures, and eased capital requirements for Islamic financial service providers.
International Cooperation
Throughout this year, agreements were signed with four regulators, including the National Commission for Digital Assets of El Salvador (CNAD), the Central Bank of the Republic of Azerbaijan (CBAR), the Insurance and Private Pension Regulation and Supervision Agency of Türkiye, and the Swedish Financial Supervisory Authority (Finansinspektionen).
Roadmaps for expanded cooperation were signed with the Financial Services Authority of the Sultanate of Oman, the National Agency for Perspective Projects of the Republic of Uzbekistan, the financial regulator of the Kyrgyz Republic (Finnadzor), and the Central Bank of Hungary.
Overall, since its inception, AFSA has signed 57 agreements and memorandums of understanding.
Reference:
The Astana Financial Services Authority (AFSA) is the independent regulator of the Astana International Financial Centre (AIFC), which is established in accordance with the Constitutional Law of the Republic of Kazakhstan “On the Astana International Financial Centre” for the purposes of regulating financial services and related activities in the AIFC. AFSA administers the AIFC Regulations and Rules and is responsible for the authorisation, registration, recognition and supervision of financial firms and market institutions in the AIFC.
Over 3,600 firms from over 80 countries are registered in the AIFC. These firms provide banking, insurance, investment, professional and other services. The range of financial services offered at the AIFC is comparable to the list of services available in long-established financial centers of the world, such as London, Hong Kong, Singapore, Dubai and others. www.afsa.kz
The Astana International Financial Centre (AIFC) is an independent jurisdiction with a favourable legal and regulatory environment and a developed infrastructure for starting and doing business, attracting investment, creating jobs and developing Kazakhstan’s economy. https://aifc.kz/
Contact information:
Public Relations and Communications Division of AFSA: +7 (717) 264 73 43; +7 7172 61-37-45 email: [email protected]
[1] an investment instrument with pooled funds that is managed to outperform average market returns
[2] a fund that pools money from investors and primarily invests in unlisted businesses
[3] a company that owns, operates, or finances income-generating real estate and sells shares to raise capital to do so.
[4] an investment vehicle comprising several Sub-Funds, each with its unique investment objectives and strategies, while remaining as a single legal entity.
[5] a Collective Investment Scheme whose Units are Offered in the AIFC only by way of a private placement to Professional Clients and in the minimum subscription amounts of US$50,000.
[6] An exchange-traded fund is an investment vehicle that pools a group of securities into a fund. It can be traded like an individual stock on an exchange.
[7] This ETF is designed to track the performance of the ITS World index, which comprises a diversified portfolio of 50 leading companies from various global regions, including the Americas, Europe, Asia, and significant players in the Kazakhstani economy.
[8] Qualified Intermediary (QI) status is a special designation given by the U.S. Internal Revenue Service (IRS) to financial institutions, such as banks or trading platforms, outside the United States. It allows them to handle U.S.-sourced investment income (like dividends or interest from U.S. stocks) on behalf of their clients while ensuring proper tax compliance.