AFSA suspends the Licence of Sanity Capital Ltd following its failure to meet ongoing fitness and propriety requirements of the AFSA
The Astana Financial Services Authority (AFSA) has suspended the Licence of Sanity Capital Ltd after the firm had breached regulatory requirements in relation to the AFSA’s capital and liquidity requirements. Sanity Capital Ltd also failed to ensure that all mandatory appointments were filled at all times by Approved Individuals or Designated Individuals as required by the AFSA.
Despite Sanity Capital Ltd previously being ordered to resolve the above matters in a timely manner, it has not done so, so AFSA had to take measures.
The AFSA requires companies to comply with the minimum requirements set by the regulator and will not hesitate to take appropriate action against participants who persist in ignoring the regulator’s requirements and failing to present credible plans to meet them.
Deputy CEO of the AFSA Mr Gareth Ling said: “No clients of Sanity Capital Ltd suffered any detriment or were exposed to any undue risks, but this does not mean the AFSA’s minimum requirements to be a “fit and proper” person should be taken any less seriously by firms wishing to remain authorised to provide financial services in or from the AIFC”.
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 1,300 firms from 64 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 that began operations in 2018. In accordance with the 2025 Development Strategy, the key task of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and South Caucasus. www.aifc.kz
AFSA provides prudential reliefs for authorised firms managing Collective Investment Scheme
AFSA announces prudential relief measures for firms authorised to carry out the regulated activity of Managing a Collective Investment Scheme in respect of Exempt Funds[1]. The respective class modification took effect on 24 April 2024 and may be found via this Notice.
The relief measures grant a grace period to Firms to comply with the Minimum Capital Requirement for the period of implementing their Risk Mitigation Programme[2] and 24 months after its completion.
Considering that there are firms that have already implemented their RMPs and operate more than 24 months, approximately 50% of the existing and all the new Authorised Firms licensed to carry out the Regulated Activity of Managing a Collective Investment Scheme in respect of Exempt Funds will be able to enjoy this grace period.
The relief measures have been introduced because newly emerging investment firms bring fresh perspectives, novel approaches, and disruptive technologies that have the potential to reshape the industry and drive economic growth.
However, we must also acknowledge that new investment firms face a distinct set of challenges as they navigate the regulatory environment in the AIFC. Unlike established players that have years of operation in the AIFC, they often lack the scale, resources, and institutional knowledge to comply with the stringent prudential requirements.
By providing targeted regulatory relief tailored to the unique circumstances of these firms, we can level the playing field, encourage entrepreneurship, unlock their full potential, and facilitate access to capital for startups, encourage investment in innovative projects.
AFSA Chief Executive Officer Nurkhat Kushimov said: “The unveiled prudential relief measures are a significant step forward in our regulatory approach aimed at fostering a more dynamic and competitive environment in the financial sector of AIFC and are a timely facilitator of balance between safeguarding the stability and integrity of the financial system while also promoting innovation, growth, and competitiveness within the industry.”
These measures are expected to enhance the fund and fund management environment in the AIFC, increase fund managers’ competitiveness by reducing their compliance costs, increasing access to capital, and implementing AFSA’s Strategy goals.
It should also be mentioned that Authorised Firms are required to disclose the applied grace period expressly in their Offering Materials for Unitholders and disclose the firms’ Capital Resources, calculated according to Chapter 3 of AIFC Prudential Rules for investment firms.
Capital Resources refer to financial assets and reserves that an investment firm holds to meet regulatory requirements and absorb potential losses.
To have control over the financial risks and market stability in short- and mid-term periods, AFSA will keep its intervention power, outlined in Rule 2.2.3 of AIFC Prudential Rules for investment firms.
This means that when certain unfavorable scenarios unfold in the market that may affect financial stability of the firm or the market in whole, AFSA may impose requirements on investment firms to have and maintain additional amounts of Capital Resources and/or Liquid Assets.
Liquid Assets refer to assets that can be easily converted into cash without significant loss of value or disruption to the market.
Other requirements set by AIFC Prudential Rules for investment firms, including those described in Liquid Assets requirement and Reporting and Notification requirements, remain applicable for Authorised Firms.
“Astana Exchange” falsely claims to be registered and licenced at AIFC
The Astana Financial Services Authority (AFSA) alerts the public that the company calling itself “Astana Exchange” and offering cryptocurrency exchange services is a scam.
This company uses a forged licence to provide financial services. AFSA’s investigation has revealed that this company is not registered with the Astana International Financial Centre (AIFC) and does not hold a valid financial services license. Therefore, its activities are illegal.
AFSA encourages the public to check the Public Register, which contains business information of companies authorised and/or registered by AFSA. This step is important to ensure that the firm is authorised before using any financial services or products.
AFSA strongly advises that you do not respond to any communication regarding this scam, and under no circumstances should you enter into a contractual relationship with this firm, send or give any money to any party in connection with this scam.
If you have any concerns about the authenticity of any correspondence or you suspect that you have been contacted by someone involved in a scam, we suggest that you address your concerns directly to AFSA. You can do this by using the online form available on our website.
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 2,700 firms from 78 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) and the National Digital Assets Commission of El Salvador (CNAD) in agreement to enhance cooperation
The Astana Financial Services Authority (AFSA) and the National Digital Assets Commission of El Salvador (CNAD) signed a Memorandum of Understanding (MoU) in May 2024, aimed at enhancing cooperation, mutual assistance, and the facilitation of information exchange within the digital assets markets across their respective jurisdictions. This brings AFSA’s total of international agreements with fellow regulators to 54.
The document signifies the commitment of both regulatory bodies to strengthen their collaboration. The main objective is to promote cross-border cooperation within the financial industry, foster consistent high-level communication, and facilitate the sharing of information regarding financial markets.
The Astana International Financial Centre actively supports innovations and promotes the development of innovative approaches in the financial sector, contributing to sustainable growth and progress. In particular, significant efforts have been made in recent years to create a digital assets ecosystem in the AIFC and Kazakhstan. As an example, a pilot project that tested fiat gateways between AIFC-licenced cryptoexchanges and Kazakhstan’s commercial banks brought a total of transactions within the pilot to an amount worth around 240 mln USD and served as a foundation for a number of regulatory initiatives, such as Rules on interaction of Digital Asset Service Providers and commercial banks of Kazakhstan, a Rulebook on Digital Asset Activities, the Security Token Offering Framework, and the Stablecoins Framework.
To further test new products and services, AFSA offers its FinTech Lab (regulatory sandbox) platform to experiment with novel projects in a secure way. As of today, there are 18 participants in the sandbox, where the majority (14) are digital asset service providers. Trading volume of Digital Asset Services Providers in 2023 stood at 320 mln USD, while in the first quarter of 2024 this figure reached 232 mln USD.
AFSA Chief Executive Officer Nurkhat Kushimov said: “The rapid flow of goods, services, people and finance across borders is testing the effectiveness and the capacity of domestic regulatory frameworks. Combined with increased globalisation and digitalisation, this pace of development presents policy makers and regulators with challenges that are difficult to deal with in isolation. Regulatory cooperation helps to bridge the gaps and align regulations for faster and safer transactions.”
Juan Carlos Reyes, president of CNAD, believes that signing this type of MoU is an important milestone in a borderless, globalised economy. “We see AFSA as a pioneer in the digital assets regulatory industry, and the signing of this MoU is an important step in strengthening global regulatory authorities. Given that we work with technology that transcends geographical barriers, it’s crucial to recognise that the regulated businesses can impact each country differently. By creating agreements like this, we can ensure the adoption of best practices, identify bad actors, and, most importantly, achieve financial transparency as per global and each countries’ national requirements.”
CNAD has been instrumental in positioning El Salvador as a leader in the digital economy. Through its rigorous regulatory framework, CNAD has successfully cultivated a secure and transparent digital asset market, contributing to the nation’s financial inclusivity and economic dynamism. Notable successes include the launch of the $ESOY public offer by E-GRAINS S.A. DE C.V[1]., the approval of the innovative “Volcano Bond[2].” The commission through its sandbox project has approved over one billion dollars of real-world asset (RWA) tokenisation.
As an authoritative body for digital asset regulation, CNAD has established a comprehensive public registry, ensuring that all market participants adhere to the highest standards of operation. Its proactive approach in licensing and oversight has deterred fraudulent activities, safeguarding consumer interests and the integrity of the financial system. The commission’s commitment to fostering innovation and collaboration has been pivotal in advancing El Salvador’s digital asset sector.
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.
The National Commission of Digital Assets of El Salvador (CNAD) serves as a pivotal government institution entrusted with the oversight and regulation of the digital asset landscape in El Salvador. This encompasses cryptocurrencies, tokens, and other digital financial instruments. CNAD’s primary objective is to uphold security, transparency, and trust within the digital asset market, thereby fostering financial inclusivity and driving economic advancement.
Over 2,700 firms from 78 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] the issuance of $ESOY tokens backed by soybeans.
[2] the use of geothermal energy from a volcano to power Bitcoin mining.
AFSA invites to its Regulatory Townhall
The Astana Financial Services Authority (AFSA) is delighted to invite you to join the Regulatory Townhall meeting, to be held on 25 April 2024 at 11:00 Astana time via Zoom.
This Regulatory Townhall would be dedicated to the discussion of the practical aspects of the proposed updates to the AIFC legislation which were published for public consultation both on AIFC and AFSA websites. AFSA aims to get suggestions from the market on the proposed updates, proposals and amendments, as well as answer to the questions of the audience.
Agenda
Presentations:
– Tokenised Commodities Framework
Saliya Aligozhina, Senior Associate of the Policy, Strategy and Risk Division, AFSA
– Proposed Enhancements to the AIFC Asset Management Framework
Gauhar Kattabek, Senior Associate of the Policy, Strategy and Risk Division, AFSA
– Family Offices Framework
Madina Maimakova, Associate of the Policy, Strategy and Risk Division, AFSA
– AIFC Venture Studio framework
Beibut Dosmurzinov, Director of Legal Development Department, AIFC Authority
– Derivatives Framework, Enabling Margin, Short Selling and High Frequency Trading
Zarina Seidakhmetova, Senior Associate of the Policy, Strategy and Risk Division, AFSA.
You are kindly invited to REGISTER ONLINE by 09:00 Astana time 25 April 2024.
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 2,500 firms from 78 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 Derivatives Framework, Enabling Margin Trading, Short Selling and High Frequency Trading
The Astana Financial Services Authority (AFSA) has issued the Consultation Paper on proposals to Derivatives Framework, Enabling Margin Trading, Short Selling and High Frequency Trading to seek public’s opinion and market interest in these framework and trading methods.
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, margin trading, short selling;
b) Authorised Firms which arrange, advise or plan to offer such activities on derivatives trading, margin trading, short selling;
c) Authorised Persons who operate an exchange platform, multilateral or organised trading facilities in relation to derivatives and short selling operations;
d) persons interested in applying for an AFSA Licence to conduct the activities referred from a) to c) above;
e) Authorised Firms using high frequency trading method;
f) other industry participants, such as ancillary service providers or those who intend to provide such services to regulated firms from a) to e) above; and
g) persons who obtain, or intend to obtain, the services from firms as referred to from a) to e) above.
The Consultation Paper consists of:
Part I – Introduction;
Part II – Overview of existing markets;
Part III – Proposed Approach and Public Consultation Questions;
Part IV – Summary of Public Consultation Questions.
We invite comments from interested stakeholders.
The deadline for providing comments is 17 May 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].
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 2,500 firms from 78 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 informs that Xignal&MT Ltd.’s licences have expired
The Astana Financial Services Authority (AFSA) informs that the licences of Xignal&MT ltd. expired on 28 March 2024. Prior to that on 24 November 2023 AFSA suspended the licences of Xignal&MT Ltd. due to compliance failures, and the firm’s operations have since been stopped while AFSA was reviewing the firm’s processes, before the licence expired in March 2024.
AFSA aims to create equitable and transparent financial and capital markets. Within this environment, both individuals and institutions are expected to uphold integrity and adhere to the highest levels of regulatory standards, which form the foundation of Astana International Financial Centre (AIFC).
If you would like to provide any information regarding Xignal&MT Ltd. please contact AFSA via the following contact details: [email protected], [email protected].
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 2,600 firms from 78 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 has issued a Consultation Paper on the proposed AIFC Venture Studio Framework
The Astana Financial Services Authority (AFSA) has issued this Consultation Paper to seek suggestions from the market on the Proposed introduction of the AIFC Venture Studio Framework and respective amendments to the AIFC Fees Rules.
We invite comments from interested stakeholders.
Venture Studio is an organisational framework for creating and launching new startup ventures. Unlike traditional venture capital firms that primarily invest in existing startups, venture studios actively conceive, develop, and launch their own startup ideas from scratch.
The deadline for providing comments on the proposed framework is 17 May 2024. Once we receive your comments, we shall consider if any refinements are required to this proposal.
We prefer to receive comments by email at [email protected]
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 2,600 firms from 78 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]
Development of the financial sector: AFSA issued 17 new licences in the first quarter of 2024
The Astana Financial Services Authority (AFSA) has issued 17 licences in the first quarter of 2024, including authorised firms in the full regulatory regime, FinTech Lab participants and Ancillary Services Providers (ASPs).
Most of the licences issued over this period relate to investment companies and Ancillary Services Providers. The significant increase in interest in investment activities in the AIFC highlights the upward trend in the sector.
Among the firms which obtained a licence to provide investment services are: Aspan Prime Capital, VPE Capital Fund Management, One Capital Ltd, Aquila Management Ltd, SQIF Am Ltd and JAS Ventures Limited. These firms offer a wealth of opportunities in terms of the geography and areas of investment. For example, JAS Ventures Limited is focused on venture capital funds investing in start-up enterprises that demonstrate innovative solutions, significant scalability, and the potential for substantial growth and market penetration on an international level. Estimates show that the aggregate value and volume of venture capital transactions in Kazakhstan between 2018 and 2022 totaled $87 million across 175 deals, illustrating a consistent annual growth trend.
Aquila Management Ltd is going to focus on investing in projects located in Kazakhstan, the CIS (Commonwealth of Independent States), China, India, Southeast Asia, Persian Gulf countries, and Turkey. The firm’s investment strategy involves acquiring partial or complete ownership in small and medium-sized companies within these regions.
One other example is VPE Capital Fund Management Limited. Its strategy will lie in investments into individual creativity, skill and talent with a potential to boost creative economy of Almaty.
Cepheus Pay Limited joined a community of FinTech Lab participants in the first quarter of 2024. In general, there are 17 companies currently operating within the regulatory sandbox, including such crypto “A-listers” as Binance, Bybit, Bitfinex Securities and others.
Emphasising the importance of this achievement, Cepheus Pay Group Chairman Izmir Ismayilov stated, “Obtaining the Providing Money Services licence from the AIFC marks a crucial milestone in our expansion strategy. It highlights our dedication to meeting the highest standards of compliance and operational integrity. This licence is a testament to the innovative financial solutions we are committed to delivering.”
Ancillary Services Providers (ASPs) are an important supporting industry that ensures that the required infrastructure is in place for firms to operate efficiently for the benefit of the market. In the first quarter 2024 AFSA licenced ten ASPs, which is 30% more than the overall 2023 result. Among the new licenced ASPs there are: Squire Patton Boggs Kazakhstan Ltd., Branch of SFAI Kazakhstan in the AIFC, Branch of Moore Kazakhstan LLP in the AIFC, Nexus For Success Ltd., B&G Solutions Ltd., FI.CENTER Ltd., Amicorp Kazakhstan Limited, Branch of “Independent Audit Company “Centeraudit-Kazakhstan” Limited Liability Partnership in the AIFC, AnalyticaPro Solutions Ltd, and Branch of Scope Audit Kazakhstan LLP in the AIFC.
Most of the new ASPs are those providing consulting and audit services, followed by legal services providers. This trend is explained by the arrival of large big-name companies, which has understandably led to an interest in AIFC from an increased number of Ancillary Services Providers.
Meanwhile, the total number of AIFC participants registered in the first quarter of this year stands at 224 – twice as many as in the same period 2023 – bringing the total to 2,619.
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 2,600 firms from 78 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]
