Посты с тэгом: AFSA

The International Swaps and Derivatives Association (ISDA) has published an Informal Country Update on the enforceability of close-out netting under the Acting Law of the Astana International Financial Centre (AIFC) issued by international law firm, Dentons. The publication of the Informal Country Update marks a significant milestone in the Astana Financial Services Authority’s work with ISDA that commenced in 2021 and marks the completion of the first step towards the full recognition of the AIFC as a ‘netting-friendly jurisdiction’.

The publication of the Informal Country Update is also an important contribution to Kazakhstan’s financial market infrastructure as the update will provide insights for globally active firms that want to carry out their financial transactions in the local market.

ISDA is one of the world’s largest global financial trade associations and the Informal Country Update covers a number of legal issues relevant to the trading of derivatives, including the enforceability of close-out netting.

Netting entails offsetting the value of multiple payments due to be exchanged between two or more parties. It can be used to determine which party is owed remuneration in a multiparty agreement. Netting may be used in trade when parties offset one position with an opposing one, to balance out losses from one with gains in another.

Having certainty on the enforceability of ‘close-out netting’, one of the types of netting, is one of the key factors that determines the location of the market participants’ trading activities.  This proposed update will create greater market interest in exploring the AIFC jurisdiction for local derivatives market and create conditions for its prosperity.

Close-out netting provides a means of mitigating credit risks associated with over-the-counter derivatives and is widely used in the financial market by private sector entities, in particular banks and private non-financial institutions. To date, ISDA recognises more than 80 jurisdictions as ‘netting-friendly’ and the AIFC aims to seek ISDA recognition for its close-out netting regime as the next step in future.

Close-out netting is crucial in promoting financial stability and the development of a robust, liquid, and efficient derivatives market as it enables derivatives participants to protect against adverse market changes following default of a counterparty. In the absence of certainty regarding close-out netting, financial institutions may face higher transaction costs and increased liquidity and regulatory capital requirements.

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 1,500 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

Contact information:

Dina Teltayeva

+7 701 765 40 10

[email protected]

Binance, the world’s largest crypto exchange, has received its In-Principle Approval from the Astana Financial Services Authority (AFSA) to operate a Digital Asset Trading Facility and Provide Custody in the Astana International Financial Centre (AIFC). AIFC is the first financial centre in the Commonwealth of Independent States (CIS) to have started working with Binance. 

AFSA is an independent regulator of the Astana International Financial Centre and a unique body that regulates activities relating to digital assets in Kazakhstan and the wider region of the CIS. AFSA’s robust regulatory framework governing FinTech has helped the AIFC to establish itself as the leading regional platform for the development of services involving digital assets.

“Large investors seeking new markets need clear-cut and well-managed rules as well as high standards of regulatory practice. When a regulator meets these requirements, it creates collaboration based on trust and an ecosystem where players can work safely and efficiently. We believe that Binance’s work will further develop this vibrant ecosystem of digital assets industry locally and regionally,” said Nurkhat Kushimov, Chief Executive Officer of AFSA.

AFSA’s FinTech regulations are designed to motivate innovative business solutions while balancing them with a fine regulatory framework to create an environment that delivers fair and transparent financial and capital markets, in which individuals and institutions act with integrity.

Binance, with its wealth of experience, technologies and opportunities will contribute to the development of the digital assets market in Kazakhstan and is going to create larger impetus for further establishing the country as the region’s cryptohub.

“Kazakhstan has shown to be a pioneer in Central Asia crypto adoption and regulation,” said Changpeng Zhao (CZ), founder and CEO of Binance. “This further signifies Binance’s commitment to being a compliance-first exchange and providing products and services in a safe and well-regulated environment across the globe.”

Gleb Kostarev, Regional Head of Asia at Binance, said: “This is a landmark achievement for Binance in Kazakhstan. We are grateful to the Astana International Financial Centre for their support and vision in granting Binance Kazakhstan this in-principle license approval”.

In-Principle Approval is one of the steps to obtain a license in the AIFC. Upon successful finalization of its licensing application, Binance will be able to provide its services as an operator of a Digital Asset Trading Facility and Provider of Custody in the Astana International Financial Centre.

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 1,400 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

Binance is the world’s leading cryptocurrency infrastructure provider with a range of financial products, including the largest digital asset exchange by volume. Trusted by millions of people around the world, Binance is designed to enhance the freedom of money for users and offers an unrivaled portfolio of crypto-currency products and offerings, including trading and finance, education, data and research, philanthropy, investment and incubation, decentralization, and more. For more information visit https://www.binance.com 

The Organisation for Economic Co-operation and Development (OECD) has released a report declaring that the Astana International Financial Centre (AIFC’s) tax regime is compliant with global standards of tax transparency. This recognition is an important step in demonstrating the AIFC’s compliance with global tax transparency standards.

According to OECD, Base Erosion and Profit Shifting (BEPS) practices cost countries 100–240 billion US dollars in lost revenues annually, which is the equivalent of 4-10% of the global corporate income tax revenues. This is the result of the abuse of gaps and inconsistencies between the tax systems of different countries.

To address this problem, in 2016 the OECD jointly with the G20 created the Inclusive Framework on Base Erosion and Profit Shifting. Today within the Framework there are over 135 countries and jurisdictions, implementing 15 actions to combat tax evasion, improve consistency of international tax rules, ensure a more transparent tax environment and address tax problems arising from the digitalisation of economy.

The OECD recommended that the AIFC implement “Substantial Presence” requirements for Kazakhstan to comply with BEPS. In this regard, in 2021 the Astana Financial Services Authority in agreement with the Ministry of Finance of the Republic of Kazakhstan adopted the Rules on Substantial Presence of the of AIFC participants applying tax exemptions for the payment of corporate income tax, value added tax. According to the Rules, AIFC participants enjoying tax benefits for the payment of corporate income tax and value added tax must confirm their presence in the AIFC. This is corroborated by meeting the requirements for core income generating activities in the AIFC, as well as ensuring amount of expenses and full-time employees are commensurate to the scope of activities.

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 1,400 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

The Astana Financial Services Authority (“AFSA”) informs that Representative Office of HITBEAT MUSIC INC. in the AIFC (“Hitbeat Music”), registered in the Astana International Financial Centre (the “AIFC”), continues to release information in the public domain which risks misleading persons into believing that this firm is authorised by AFSA to carry on such Regulated Activities as Advising on or Managing Investments.

On its website www.xetrade.mu the firm offers access to high yield investments on the U.S. stock market. However, Hitbeat Music is not authorised to offer these activities in the AIFC.  The firm advertises AFSA as a ‘partner’ when this is a false statement and is not the case.

AFSA has previously advised the firm to correct the public record in any public resources of the firm. As this information continues to be released into the public domain, AFSA considers it appropriate to set the public record straight to protect the interests of the AIFC community and members of the public.

Consumer enquiries in relation to Hitbeat Music may be directed to https://afsa.aifc.kz/submit-your-complaint or by email to [email protected].

AFSA requests consumers to exercise caution when dealing with firms claiming links with the AIFC who are soliciting investments in Cryptocurrencies and other investments without holding the relevant licence or authorisation from AFSA. The message from AFSA is for consumers to be careful, and only invest with authorised firms that are appropriately regulated by the AFSA.  It is important to note that the AIFC Participant status does not allow offering financial services without obtaining a licence for carrying on regulated financial activities from the AFSA. It is also critical that consumers distinguish between an entity registered/incorporated within the AIFC from an entity that is authorised to carry on regulated activities or other permitted activities. Consumers are advised to check the status of authorisation on AFSA’s website at https://publicreg.myafsa.com/authorised/, and avoid dealing with firms not permitted by AFSA to carry out the activities they market.

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 1,400 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

Dr Iain Saville was a member of the Board of Directors of the AFSA from April 2017 till December 2021. His exceptional performance in this service was invaluable. He was with the AFSA from its establishment as the financial regulator of the Astana International Financial Centre in the role of a member of the Board of Directors and member of all its committees (Audit and Risk Committee, Nomination and Remuneration Committee and Legislative Committee).

The achievements of the AFSA are due in large part to Dr Saville’s leadership, hard work and commitment to quality.

President of the Republic of Kazakhstan Kassym-Jomart Tokayev signed the Law of the Republic of Kazakhstan “On amendments and additions to certain legislative acts of the Republic of Kazakhstan on the regulation and development of the insurance and the securities markets, as well as the banking activities.”

The amendments cover such Laws as those governing “Insurance Activities”, “Securities Market”, “State Regulation, Control and Supervision of the Financial Market and Financial Organisations”, “State Property”, “The National Bank of the Republic of Kazakhstan”, and “Payments and payment systems.”

The law will provide opportunities to expand the activities of insurance and re-insurance companies that are AIFC participants. It will also provide opportunities for AIFC participant-banks to open correspondent accounts in second-tier banks in Kazakhstan.

The Astana Financial Services Authority (AFSA) has issued the Consultation Paper № AFSA-P-CE-2022-0004 to seek suggestions on the proposed amendments to the AIFC Banking Business Framework. The proposals in the consultation paper will be of interest to current and potential AIFC participants who are interested in exercising business activities in or from the AIFC, especially in the capacity of a Credit Provider. The proposed amendments ensure effective and fair prudential regulation of Credit Providers considering their differences from Banks. Additionally, this Consultation Paper envisages provisions of captive finance activities from the AIFC, which involve subsidiaries that typically finance purchases of equipment from their parent entity. 

Full content of the consultation paper may be found via these links:

https://aifc.kz/legal-framework/afsa-/

https://afsa.orderly.kz/articles/consultation-paper-on-proposed-amendments-to-the-aifc-banking-business-framework

All comments should be in writing and sent to the address indicated below or by email:

Policy and Strategy Division

Astana Financial Services Authority (AFSA)

55/17 Mangilik El, building C3.2, Kazakhstan

Email: [email protected]

The deadline for providing comments is 8 August 2022

When sending your comments, please indicate in a subject line: “Consultation Paper # AFSA-P-CE-2022-0004”. You may, if relevant, identify the organisation you represent when providing your comments. The AFSA reserves the right to publish, including on its website, any comments you provide, unless you expressly request otherwise. Comments supported by reasoning and evidence will be given more weight by the AFSA.

Amendments to the AIFC General Rules regarding requirements for obtaining a license to carry on legal services come into effect as of 1 July 2022. In addition, new concepts of “Legal Adviser” and “AIFC Legal Services Board” were introduced to the Glossary.

As per the new amendments, firms wishing to obtain the AFSA legal services license are required to register at least one employee with the AIFC Legal Services Board as a legal adviser.

On 3 May 2023, this requirement will also apply to existing registered AIFC participants who had obtained the AFSA legal services license prior to July 1, 2022.

These amendments are a part of the legal framework aimed at implementing a regulatory regime for legal services in the AIFC. The AIFC Legal Services Regulations were passed on May 3, 2022, and amendments were made to the AIFC General Rules, the AIFC Conduct of Business, and the Glossary, regarding obtaining and maintaining the AFSA license to provide legal services in the AIFC.

You can find more information via the following link: https://aifc.kz/legal-services-regulation/

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 1,400 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 started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus. www.aifc.kz

The official launch ceremony of the pilot project has involved representatives of the National Bank of the Republic of Kazakhstan, the Financial Monitoring Agency of the Republic of Kazakhstan, the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan, the Astana International Financial Center (AIFC) and the Association of Financiers of Kazakhstan. Banks involved in the project, including the Eurasian Bank, Halyk Bank, Altyn Bank, the AIFC crypto exchanges, as well as recognised world and Kazakhstan crypto stakeholders also attended the event.

Deputy Chairman of the AIFC Management Board Kairat Kaliyev moderated the panel session dedicated to the launch of the project.                           

The rules of interaction between the AIFC crypto exchanges and Kazakhstan’s second-tier banks (STBs) were set out by a special working group within the efforts to develop crypto-industry and blockchain technologies.The Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan is a government body which is actively engaged in digital technologies. According to its First Deputy Minister Zhaslan Madiyev, Kazakhstan has abundant opportunities to become a crypto-hub.

“In pursuance of the instruction of the Head of State given earlier, the Ministry is working on a draft law “On digital assets” initiated by Members of the Majilis of the Republic of Kazakhstan. This bill will take into account all the pros and cons of the pilot project and create the most favorable regulatory conditions for the development of a comprehensive digital ecosystem. In our country, there is a rapid development of human capital in this area. We are also actively starting to attract blockchain technologies and are also going to use blockchain in public services,” said Zhaslan Madiyev.

The interaction between the AIFC crypto exchanges and Kazakhstan’s STBs is a pilot project designed to provide an appropriate regulatory framework for further development of Kazakhstan’s potential as a regional crypto hub. The project will operate in pilot mode throughout 2022. It will involve crypto exchanges licensed by AFSA to operate as Digital Assets Trading Facilities, in cooperation with second-tier banks.

According to Gabit Lesbekov, Head of Liaison Office for Entities Subject to Financial Monitoring at the Financial Monitoring Agency of the Republic of Kazakhstan, digital technologies are new and decentralised technologies, and thus pose high money-laundering risks, while the banking sector is an active anti-money laundering stakeholder.

“We receive 95% of the information on all questionable transactions from second-tier banks.  They are the most involved participants, and they have a built-in and high-quality anti-money laundering compliance system. The only thing they need is to understand the specifics of digital technologies. We believe that there will be no difficulties for banks to carry out operations, while observing all our standards. We hope that this pilot project will give an impetus to further development of the crypto industry and to increase the investment attractiveness of Kazakhstan,” said Gabit Lesbekov.

The positive side of the pilot project is the organisation of trading of digital assets in the Republic of Kazakhstan in a regulated field, which ensures proper protection of the rights of retail and professional investors. In case of successful implementation of the pilot project, changes will be made both to the national legislation and to the AIFC acts.

According to the CEO of AFSA Nurkhat Kushimov, when launching crypto exchanges government agencies and regulators cooperated in a highly coordinated manner, which was the key to success.

“The banking industry complements the crypto industry with good quality compliance, methods, and counteraction systems. Crypto exchanges and banks should show maximum efficiency. Digital assets are a young industry, but we are ready to constantly work with colleagues and exchange opinions. We need to ensure proper regulation, but we also must not miss out on this market. We need to work to ensure that major players are in Kazakhstan, and we should attract new world-class stakeholders. We should become a hub that attracts both Kazakhstan and overseas miners. Their involvement in our financial ecosystem will help provide additional investments, liquidity and imports for the growth of Kazakhstan’s economy,” said AFSA CEO Nurkhat Kushimov.

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 1,400 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 started operations in 2018. In accordance with the Development Strategy until 2025, the key focus of the AIFC is to consolidate as a universal platform connecting the countries of the EAEU, Central Asia and the Caucasus.

www.aifc.kz