The Astana Financial Services Authority (AFSA) and the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce of the Kyrgyz Republic (Finnadzor) have signed a 2024-2025 roadmap, which is designed to further strengthen cooperation and enable the regulators to enhance existing regulatory practices. This took place during the visit by AFSA Chief Executive Officer Nurkhat Kushimov to Bishkek.

The roadmap is focused on the exchange of experience and cooperation in the development and regulation of capital markets, such as offering and trading of securities and licensing and supervision of brokers and asset managers. The parties also agreed to explore opportunities for mutual access to each other’s markets. The roadmap also provides for a similar partnership in the area of digital assets.

On the margins of the visit the AFSA CEO had a meeting and delivered an outreach session to the representatives of stock exchanges, cryptoexchanges, DASPs and brokers of the Kyrgyz Republic, signifying broader support and interest from the industry in closer cooperation between the markets and regulators.

AFSA Chief Executive Officer Nurkhat Kushimov: “This roadmap comes as a logical step following the signing of our Memorandum of Understanding almost exactly a year ago. This cooperation is a way forward to ensure that we offer better, faster and higher-quality products and services on a regional level and support the interests of our capital markets and digital assets industries for the benefit of our both jurisdictions.”

Chairman of the Service for Regulation and Supervision of the Financial Market under the Ministry of Economy and Commerce of the Kyrgyz Republic Marat Pirnazarov: “The signing of the roadmap underscores the commitment of both parties to close cooperation and joint development of financial capabilities, which in the long run will lead to a more integrated and stable financial market in the region.

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.

Around 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]

The Astana Financial Services Authority (AFSA) has issued a Consultation Paper on the proposed AIFC Environmental, Social and Governance (ESG) Disclosure Guidance to seek suggestions from the market.

AFSA proposes to introduce ESG Disclosure Guidance for Banks, Fund Managers and Insurers. The proposed guidance aims to support these financial entities in integrating ESG factors into their reporting and decision-making processes, fostering a more sustainable and responsible financial ecosystem in the AIFC. As a starting point, AFSA proposes the introduction of voluntary ESG disclosure. This initial phase allows relevant firms to familiarise themselves with best practices, adapt their operations and reporting processes, and demonstrate their commitment to sustainability.

The deadline for providing comments is 6 September 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 can be accessed via the link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0010-from-5-august-2024-on-consultation-paper-on-the-aifc-environmental-social-and-governance-disclosure-guidance

The Astana Financial Services Authority (AFSA) has issued this Consultation Paper to seek suggestions from the market on the Proposed Enhancements to the AIFC Asset Management Framework.

The proposals in this paper will be of interest to current and potential AIFC participants who are interested in asset and fund management activities in or from the Astana International Financial Centre (AIFC).

Considering the developments in the AIFC asset management sector and insights gained during the supervision of the regulated community, this Consultation Paper contains further Enhancements to the AIFC Asset Management Framework:

Expanding the list of Specialist Funds:
Credit Funds
Digital Asset Funds
Exchange Traded Funds
Money Market Funds
Enhancements to the AIFC Venture Capital framework
Application of CIS Rules to a Centre Participant which markets a Collective Investment Scheme in or from the AIFC
Mandatory appointment of AFSA licenced Fund Administrator
Amendments in relation to tokenised Units and Funds investing in Investment Tokens or Qualified Investment Tokens.
We invite comments from interested stakeholders.

The deadline for providing comments on the proposed framework is 2 September 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 can be accessed via the link: https://orderly.myafsa.com/articles/consultation-paper-afsa-p-ce-2024-0009-from-2-august-2024-on-proposed-enhancements-to-the-aifc-asset-management-framework

JSC QazPost, the National postal operator of Kazakhstan, can now carry out fiat[1] transactions with digital assets. The company was officially included on the list of organisations that can provide such services along with commercial banks (second-tier banks – STBs) in Kazakhstan. The relevant changes are reflected in the Rules of Cooperation of Digital Assets Services Providers and commercial banks of Kazakhstan.[2]

The Astana International Financial Centre together with the National Bank of the Republic of Kazakhstan and the Agency of the Republic of Kazakhstan on Regulation and Development of Financial Market made amendments of a clarifying nature to the Rules of Cooperation, expanding the list of fiat channels by including the National postal operator.

AIFC actively supports the development of financial innovations, including those involving digital assets, which is one of the most dynamically developing areas. The amendments allow the National postal operator to act as a fiat channel, that is to provide its customers with financial services for deposits and withdrawals. The addition of a new fiat channel also expands the choice for digital asset service providers, thus facilitating the arrival of new entrants into the regulated digital assets market.

The amendments to the Rules of Cooperation are part of a broader initiative to position Kazakhstan as a leading centre for digital finance and innovation. By leveraging the extensive network and capabilities of the National postal operator, AIFC and its partners aim to better support the growing digital assets market.

AFSA CEO Nurkhat Kushimov: “Fiat channels play a key role for the development of the digital asset industry. With the inclusion of QazPost in the Rules of Cooperation, AIFC digital asset service providers and investors in digital assets will have more options in choosing a fiat channel. We also expect an increase in trading volumes of AIFC digital asset service providers. Besides, an increase in the number of players providing fiat channels will also foster competition, which will have a positive impact on the industry. AIFC intends to continue to support the development of innovations in digital assets with the aim of creating a global crypto hub in AIFC.”

QazPost Chairperson of the Management Board Assel Zhanassova: “QazPost’s inclusion in the Rules opens new horizons for our citizens, customers and businesses that are interested in the sphere of digital assets. Using QazPost’s financial products and infrastructure solutions, customers will be able to deposit and withdraw fiat funds to work with digital assets. This year the first collaboration is planned, which will allow QazPost payment card holders to enter fiat funds into a crypto exchange to purchase cryptocurrencies, and also to conduct a reverse operation of crediting fiat funds from a crypto exchange to the card online, without visiting our branches.”

In the first half of 2024, the trading volume of all digital asset service providers licenced in AIFC was over USD 543 million. This significant trading volume is indicative of the growing interest and activity in the digital asset market in Kazakhstan.

Reference:

QazPost JSC is the national postal operator of the Republic of Kazakhstan, providing postal, financial, logistics, brokerage, agency and e-commerce services. QazPost JSC is the largest branch network in the country, covering almost the entire territory of Kazakhstan, especially at the district and rural levels.

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.

Around 2,900 firms from 81 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] Fiat Currency is currency which is issued by or on behalf of the government in its country (or countries) of issuance, and which is designated as legal tender in that or those countries through government decree, regulation or law.

[2] Rules and mechanisms of cooperation of Unbacked Digital Asset Exchanges and/or Centre Participants authorised to carry out digital assets-related activities with second-tier bank of the Republic of Kazakhstan (Rules of cooperation).

AFSA announces measures for Authorised Firms to carry out the Regulated Activity of Managing a Collective Investment Scheme in respect of Exempt Funds[1]. As per the new approach Exempt Funds may have their Units admitted to trading on Authorised Investment Exchanges[2] of AIFC. The respective notice on class modification may be found via this link.

Prior to this change Fund Managers of only Non-Exempt Funds[3] could have their Units traded on AIFC Authorised Investment Exchanges. Admitting Exempt Funds will bring in more diverse financial instruments, connect professional investors and Fund Managers who are keen to sell their Fund Units and may consequently reduce distribution costs, raise firms’ visibility and contribute to their overall reputational standing in the finance industry.

AFSA Chief Executive Officer Nurkhat Kushimov: “Fund Managers will know that the distribution channels they have available to them will define how successfully they perform and help businesses grow. Previously, when Fund Managers wanted to sell large volumes of Fund Units, one of the most popular options was to use over-the-counter[4] trading. By allowing Fund Managers to sell Units of Exempt Funds we contribute to efficient product distribution, expand market reach and enhance client satisfaction.”

AFSA’s strategic goal includes the continued development of fund infrastructure within the AIFC. By implementing these modifications, AFSA aims to broaden the distribution channels for Exempt Funds within the AIFC, enhance the competitiveness of the AIFC fund ecosystem, and streamline the distribution of Units for Exempt Funds.

This measure stipulates for a change in certain regulatory prohibitions[5] and will last until further notice 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 authorisation, registration, recognition and supervision of financial firms and market institutions in the AIFC.

Over 2,900 firms from 81 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] 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.

[2] An Authorised Investment Exchange is an AIFC Centre Participant which has been licenced by AFSA to carry on the Market Activity of Operating an Investment Exchange.

[3] A Non-Exempt Fund is any Collective Investment Scheme whose Units are Offered in the AIFC and which is not an Exempt Fund.

[4] Over-the-counter (OTC) 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 assets quicker and in large blocks.

[5] specified in AIFC MAR Rules 7.1.2, AIFC FSFR 62, AFSA CIS Rules 4.2, and Chapters 2, 3, 4, 8, and 9 of AIFC COB Rules.

The Astana Financial Services Authority (AFSA) is delighted to invite you to join the Regulatory Townhall meeting to be held on 18 July 2024 from 11:00 to 12:30 Astana time via Zoom.

During the Regulatory Townhall new frameworks and amendments to the AIFC legislation will be presented and discussed. Respective consultation papers were made available for feedback on our website (please refer to the link for your convenience). AFSA aims to get suggestions from the market on the regulatory approach and legislative proposals, as well as respond to the questions of the audience.
Agenda

Presentations 11:00 am – 11:45 pm:
Enabling trading of tokenised Investments (https://shorturl.at/m27GG)

Gauhar Kattabek, Senior Associate of the Policy, Strategy and Risk Division, AFSA

Treasury framework (https://shorturl.at/770Oh)

Madina Maimakova, Senior Associate of the Policy, Strategy and Risk Division, AFSA

Credit Rating Agencies framework (https://shorturl.at/Dy8ni)

Zarina Seidakhmetova, Senior Associate of the Policy, Strategy and Risk Division, AFSA

ESG Debentures framework (https://shorturl.at/reEj3)

Aigerim Nurmakhanova, Associate of the Policy, Strategy and Risk Division, AFSA

Legal Entities Framework (https://shorturl.at/INbxU)

Bekezhan Amantay, Associate of the Registration Division, AFSA

Antonina Buts, Senior Associate of the Registration Division, AFSA

Q&A SESSION – 11:45 – 12:15
You are kindly invited to REGISTER ONLINE in advance by 09:00 Astana time 18 July 2024.

https://us06web.zoom.us/meeting/register/tZUrd-utqzIrEtdqJF9SJy-rYpQF7az8qcZI

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.

Around 2,900 firms from 81 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]