AFSA Warning on Unlicensed Digital Asset Platforms

The Astana Financial Services Authority (AFSA) reminds that, in accordance with Article 11(5) of the Law of the Republic of Kazakhstan “On Digital Assets in the Republic of Kazakhstan”, the organisation of circulation of digital assets within the territory of the Republic of Kazakhstan is prohibited without an appropriate licence or authorisation issued under the applicable law of the Astana International Financial Centre (AIFC) or the legislation of the Republic of Kazakhstan. 

Accordingly, AFSA warns market participants of the risks associated with the use of unlicensed platforms for trading crypto or digital assets that advertise or promote their services to citizens of the Republic of Kazakhstan without the appropriate authorisation, licence or recognition under the applicable regulatory framework of the AIFC and the Republic of Kazakhstan. 

This warning relates, in particular, to platforms publicly known under the following names, brands or trademarks*: 

• OKX  

• HTX  

• Bitget  

• MEXC  

AFSA reminds that only entities licensed by AFSA are permitted to lawfully carry on regulated activities in or from the AIFC, including activities related to digital assets and associated services.

Key Risks for Consumers 

The use of unlicensed digital asset platforms may expose consumers to the following risks: 

• absence of legal mechanisms to protect their rights and interests due to the lack of regulatory oversight over unlicensed platforms; 

• risk of involvement of bona fide investors in fraudulent schemes and illicit circulation of digital assets due to insufficient anti-money laundering and counter-terrorist financing (AML/CFT) measures on such platforms; 

• increased risk of financial loss where investment decisions are made based on misleading or aggressive advertising, including online promotions, bonus schemes and referral campaigns that do not comply with regulatory requirements; 

• increased risk of personal data breaches and loss of assets, including reduced traceability, resulting from failure of unlicensed platforms to meet minimum regulatory requirements in data protection and cybersecurity, which may lead to fraud, technical failures, restricted account access or difficulties in withdrawing funds. 

Unlicensed platforms may also provide access to products and services such as spot trading, margin trading, futures, options, staking, peer-to-peer services, and listings of highly volatile or low-quality digital assets – often without appropriate safeguards, risk disclosures or investor protections typically expected from regulated entities.

Important Information for Consumers 

The fact that a platform: 

• is widely known internationally; 

• maintains a website; 

• offers a mobile application; 

• is active on social media; or 

• is heavily advertised, 

does not mean that such a platform is authorised by AFSA or entitled to provide regulated services within the AIFC legal and regulatory framework.

Persons dealing with unlicensed firms will not benefit from the protections, standards and safeguards applicable to regulated entities.

In case of identifying signs of misleading or unfair advertising, AFSA recommends not following suspicious links, not transferring funds, and not sharing personal or payment data until the regulatory status of the relevant entity has been verified.

AFSA recommendations  

Before using any digital asset platform, AFSA recommends that consumers:  

• verify whether the relevant entity is licensed by AFSA or otherwise authorised under the applicable legislation of the Republic of Kazakhstan;  

• carefully review the products and services offered and the associated risks; 

• refrain from transferring funds or digital assets to entities whose regulatory status is unclear or cannot be verified; 

• avoid sharing identification documents, banking details, wallet access information or one-time verification codes with third parties; 

• exercise particular caution where platforms promise high returns, offer high leverage, or present investments as “low-risk” or “guaranteed”; 

• in case of suspicious advertising, document the relevant materials (e.g. screenshots or links) and use official channels to report the matter to regulatory authorities.  

Where a platform is registered in, or claims to be associated with, the AIFC, reports may be submitted to: [email protected] or via the official consumer section of the AFSA website. In other cases, information regarding misleading or unlawful advertising in the Republic of Kazakhstan should be submitted to the Ministry of Culture and Information of the Republic of Kazakhstan via the eOtinish portal or other available channels.

AFSA also recommends verifying the regulatory status of any entity through the official AFSA Public Register: https://publicreg.myafsa.com

It should be noted that regulation of activities related to the circulation of digital assets in the Republic of Kazakhstan is carried out both within the supervisory framework of AFSA and in accordance with the legislation of the Republic of Kazakhstan, including oversight by national regulators such as the National Bank of the Republic of Kazakhstan and the Agency for Regulation and Development of the Financial Market. 

This notice is provided for general informational purposes only and does not constitute legal, financial or investment advice, nor does it represent a determination of compliance, breach or regulatory status of any person or entity. 

* AFSA does not maintain a list of prohibited platforms. The absence of a firm from the Public Register indicates that it is not authorised by AFSA to carry out regulated activities in or from the AIFC; however, its regulatory status within the national jurisdiction of the Republic of Kazakhstan is determined by the competent state authorities of the Republic of Kazakhstan.