AFSA for the first time ever delivers training of regulatory approaches to Crypto and Digital Asset Markets at IOSCO headquarters
Staff of the Astana Financial Services Authority (AFSA) has for the first time presented its regulatory approaches to Crypto and Digital Asset markets to the members of International Organization of Securities Commissions (IOSCO)[1]. The training was conducted within the 26th edition IOSCO Seminar Training Programme: “Regulation and Supervision of Crypto and Digital Assets Markets.”
AFSA’s FinTech Director Yagub Zamanov shared the history and milestones of the development of the regulatory framework for digital assets at the AIFC, starting from the establishment of a FinTech Lab[2] and the continuous growth over the following years within which AFSA became an IOSCO associate member, agreed with national regulators to launch a pilot project testing fiat gateways between AIFC’s digital assets exchanges and commercial banks of Kazakhstan that consequently resulted in the Rulebook on Digital Assets Activities and the Rules governing interactions of Digital Asset Service Providers and commercial banks of Kazakhstan.
Yagub also shared tips on how to tackle key challenges in developing Crypto and Digital Assets policy and using blockchain analytics tools.
AFSA’s continuous engagement with and supervision of entities in the regulatory sandbox allowed to launch new initiatives such as the OTC[3] Guidance and the Stablecoins Framework allowing the issuance of fiat stablecoins pegged to G10 currencies and any other currency approved by AFSA.
In March this year AFSA issued a call on Digital Assets Services Providers to test out new products, including activities involving margin trading, peer-to-peer, derivatives trading, staking, non-fungible trading, digital asset loans and other services.
It is important to note that throughout AFSA’s work it is guided by the three core IOSCO objectives – investor protection, ensuring fairness, efficiency, and transparency of markets as well as reducing the systemic risk.
AFSA is a signatory to IOSCO Multilateral Memorandum of Understanding and IOSCO Enhanced Multilateral Memorandum 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 3000 firms from 82 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] IOSCO is the international body that brings together the world’s securities regulators and is recognized as the global standard setter for financial markets regulation. IOSCO develops, implements and promotes adherence to internationally recognized standards for financial markets regulation and works closely with other international organizations on the global regulatory reform agenda.
[2] FinTech Lab is a tailored live environment, where firms can offer innovative financial and RegTech services without being immediately subject to the full set of regulatory requirements.
[3] In decentralised finance, Over-the-Counter trading is considered as a separate trading option widely used for large undertaking or transaction by large or institutional players because OTC transactions allows to discharge large volumes of Digital Assets quicker and in large blocks.
AFSA enacts the AIFC ESG Debentures framework effective from 1 October 2024
The Astana Financial Services Authority (AFSA) has enacted the AIFC ESG Debentures framework effective from 1 October 2024.
The framework introduces minimal standards of regulation and requirements for issuance and offering of green and sustainable debt instruments including sukuk under an overarching concept of the “AIFC ESG Debentures”. The intention is to provide clear guidelines to issuers, making it simpler to design and market these financial products while also helping investors identify sustainable investing opportunities.
This framework seeks to stimulate green finance capital flows and support financing for adaptation and mitigation efforts, contributing to global climate goals. It promotes transparency, accountability, and alignment with international standards, ensuring that issuers meet clear environmental objectives.
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 3000 firms from 82 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]
AFSA has adopted amendments to the AIFC Rules concerning Qualifications Necessary for Employment in the AIFC
AFSA is pleased to announce the adoption of amendments to the AIFC Rules No. GR009 of 2017 concerning Qualifications Necessary for Employment in the AIFC (the AIFC Rules).
These amendments aim to ensure mandatory educational and experience-based criteria for foreign nationals and stateless persons for employment within the AIFC, helping to uphold the high qualification standards crucial for maintaining the quality and integrity of the AIFC workforce.
One significant change in the amended AIFC Rules is the introduction of the AIFC Authority’s ability to grant waivers and modifications from the certain requirements of the AIFC Rules in regard to foreign employees of the AIFC Participants, who are not carrying on a Controlled Function or a Designated Function under rules 2.2 and 2.3 of the AIFC General Rules.
These amendments are designed to enhance the efficiency and adaptability of the AIFC’s employment framework, ensuring it continues to attract a highly qualified international workforce.
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 3,000 firms from 82 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]
Astana Financial Services Authority (AFSA) and Central Bank of the Republic of Azerbaijan (CBAR) Sign Memorandum of Understanding on consultations, cooperation and information sharing
The Astana Financial Services Authority (AFSA) and the Central Bank of the Republic of Azerbaijan (CBAR) have signed a Memorandum of Understanding (MoU) that establishes a framework for closer cooperation between the authorities aimed to support the execution of their supervisory functions and promote the safe and sound functioning of financial markets in the respective jurisdictions.
The MoU underscores AFSA’s and CBAR’s commitment to strengthening cooperation based on mutual trust and understanding in supervising financial markets. Both authorities will make every effort to collaborate in supervisory activities and ensure prompt and timely exchange of information and mutual assistance to facilitate effective supervision of financial institutions operating in both jurisdictions.
The MoU also covers coordination focused on promoting cooperation through knowledge and experience sharing, as well as staff secondments. Authorities also agreed to pursue joint staff training programmes aimed at strengthening robust supervisory practices.
This brings AFSA’s total of international agreements with peer regulators to 57.
AFSA Chief Executive Officer Nurkhat Kushimov said: “This MoU marks the start of a strengthened partnership between AFSA and CBAR, as we are looking forward to continued collaboration and more joint projects in the future.”
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 3,000 firms from 82 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]
AFSA issues Consultation Paper on the proposed AIFC Providing Money Services framework. Deadline for providing comments is 23 October 2024.
The Astana Financial Services Authority (AFSA) has issued a Consultation Paper on Providing Money Services framework to seek suggestions from the market.
Money Service Providers (“MSP”) play an important role in the financial system of both AIFC and Kazakhstan. As of 1 September 2024, AFSA issued only 7 licences for MSPs. The proposed framework is aimed to implement a comprehensive, flexible framework that will provide legal clarity for MSPs. Besides, the proposed regulatory regime for MSPs has a balanced approach, where it both fosters innovations in the sphere of payments and money services and strengthens operational resilience, cyber-security and consumer protection measures. The proposal aims to increase the number of MSPs, but at the same time ensure safe environment for customers
The proposals in this paper will be of interest to current or potential applicants, who are seeking to engage in money services activities from the AIFC, ancillary service providers and professional advisors.
During the public consultation, both existing and potential AIFC participants, as well as other stakeholder are invited to comment on the questions outlined in the Consultation Paper.
The deadline for providing comments is 23 October 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
AFSA prefers to receive comments by email at [email protected].
The Consultation paper may be found via this link: https://orderly.myafsa.com/articles/consultation-paper-afsa-f-ce-2024-0001-from-23-september-2024-on-on-providing-money-services-framework.
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 3000 firms from 82 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]
AFSA registers first Non-exempt fund for retail investors
AFSA has registered the first Non-exempt fund[1] for retail investors – SBI Active Fund. This move is a significant development because it allows retail investors to access a broader range of investment opportunities similar to those typically available to professional investors using Exempt funds[2].
Unlike exempt funds, Non-Exempt Funds are subject to more rigorous regulatory oversight and transparency requirements. They enhance the diversity of investment offerings by providing a broader range of financial products that cater to different investor categories. Additionally, they facilitate wider market participation, which ultimately contributes to the development of financial markets. Non-Exempt Funds generally impose fewer restrictions on investor participation, making them accessible to a wider audience, including retail investors. This inclusivity helps increase liquidity and market activity within the AIFC.
AFSA is enabling retail investors to explore advanced investment strategies, which could include more flexibility in terms of asset allocation, risk exposure, and potential returns. This could also lead to a more dynamic retail investment market in Kazakhstan.
AFSA Chief Executive Officer Nurkhat Kushimov said: “This is a significant development that offers a lot more opportunities for retail clients and while I know that it is a step forward, I would also like to remind that customers wishing to use this new opportunity should be aware of the higher risks that go with it. And while AFSA has the protections in place that retail clients should use, consumers should ensure that they make informed and well-researched decisions and make sure that any AIFC financial services firms they deal with have appropriate licences from AFSA.”
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 authorization, registration, recognition and supervision of financial firms and market institutions in the AIFC.
Over 3,000 firms from 82 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 favorable 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] A Non-Exempt Fund is any Collective Investment Scheme whose Units are Offered in the AIFC and which is not an Exempt Fund.
[2] An Exempt Fund is 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.
AFSA issues Consultation Paper to seek further input on the proposed approaches to Derivatives framework. Deadline for providing comments is 20 October 2024.
The Astana Financial Services Authority (AFSA) has issued this Consultation Paper to seek further input on the proposed approaches to Derivatives framework, following the initial proposals set out in Consultation Paper AFSA-P-CE-2024-0004 on Derivatives Framework, Enabling Margin Trading, Short Selling and High Frequency Trading. Given the market feedback, AFSA considers it necessary to undertake further public consultation on these proposals.
The proposals in this paper will be of interest to:
a) Authorised Firms, such as dealers or brokers, who offer or plan to offer to their clients derivatives trading;
b) Authorised Firms which arrange, advise or plan to offer such activities on derivatives trading;
c) Authorised Persons who operate an exchange platform, multilateral or organised trading facilities in relation to derivatives;
d) persons interested in applying for an AFSA Licence to conduct the activities referred from a) to c) above;
e) other industry participants, such as ancillary service providers or those who intend to provide such services to regulated firms from a) to d) above; and
f) persons who obtain, or intend to obtain, the services from firms as referred to from a) to c) above.
We invite comments from interested stakeholders.
The deadline for providing comments is 20 October 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
AFSA prefers to receive comments by email at [email protected].
The Consultation paper may be found via this link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0013-from-20-september-2024-on-proposals-to-derivatives-framework-enabling-margin-trading-short-selling-and-high-frequency-trading.
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 3000 firms from 82 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]
AFSA issues Consultation Paper on the updated proposals concerning its approaches to enhancing Credit Rating Agencies (CRAs) framework. Deadline for providing comments is 19 October 2024.
The Astana Financial Services Authority (AFSA) has issued this Consultation Paper to seek further input on the updated proposals concerning our approaches to enhancing the Credit Rating Agencies (CRAs) framework, following the initial proposals set out in Consultation Paper AFSA-P-CE-2024-0007.
CRAs play a critical role in promoting transparency and efficiency in financial markets by providing independent assessments of credit risk and help enhance the safety and soundness of the financial system by providing insights into risk exposures and guiding regulatory actions to maintain stability. Investors and financial institutions heavily rely on credit ratings to make informed investment decisions.
Considering the market responses received during public consultation, AFSA proposes a transition of CRAs from being an Ancillary Services Provider to an Authorised Firm and further enhancement of the existing regulation. This proposal aims to refine the regulatory environment for CRAs, ensuring robust and effective supervision and enhancing the quality and reliability of credit ratings.
The proposals in this paper will be of interest to CRAs, Authorised Persons, legal entities seeking credit ratings from CRAs, all users of credit ratings and any other interested stakeholders, including government and regulatory authorities in Kazakhstan.
We invite comments from interested stakeholders.
The deadline for providing comments is 19 October 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
AFSA prefers to receive comments by email at [email protected].
The Consultation paper may be found via this link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-e-2024-0012-from-19-september-2024-on-proposals-to-enhancements-to-credit-rating-agencies-framework.
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 3000 firms from 82 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]
AFSA issues Consultation Paper on Proposals to amendments to the AIFC Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Framework. Deadline for providing comments is 20 October 2024.
The Astana Financial Services Authority (AFSA) has issued the Consultation Paper on Proposals to the amendments to the AIFC Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Framework to seek public’s opinion.
The current Astana International Financial Centre (AIFC) Anti-Money Laundering, Counter-Terrorist Financing and Sanctions (AML/CFT) framework maintains a regime that acts as a significant deterrent to illegal activities in financial sector, including money laundering, sanctions violations and persons wishing to assist, in any way, terrorism financing and proliferation of weapons of mass destruction.
During the practical implementation of the AIFC AML/CFT framework, AFSA has identified several areas for potential improvement within the AIFC Anti-Money Laundering, Counter-Terrorist Financing and Sanctions Rules. Specifically, certain provisions necessitate clarification due to differing interpretations by the AIFC Participants. Additionally, amendments and further clarifications are required to align these provisions more closely with FATF standards.
The proposals in this paper will be of interest to the Authorised Firms, Authorised Market Institutions, FinTech Lab Participants, DNFBPs, and Registered Auditors in the AIFC.
We invite comments from interested stakeholders.
The deadline for providing comments is 20 October 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
AFSA prefers to receive comments by email at [email protected].
The Consultation Paper may be found via this link: https://orderly.myafsa.com/articles/consultation-paper-asfa-j-ce-2024-0001-from-20-september-2024-on-proposals-to-the-amendments-to-the-aifc-anti-money-laundering-counter-terrorist-financing-and-sanctions-framework.
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 3000 firms from 82 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]
