Посты с тэгом: AFSA

The International Swaps and Derivatives Association, Inc. (ISDA) has recognised the Astana International Financial Centre (AIFC) as a netting-friendly jurisdiction and published its legal opinion prepared by Dentons Kazakhstan LLP for ISDA members.

The legal opinion recognises the enforceability of close-out netting of the ISDA Master Agreements[1] under the Acting Law of the AIFC. The publication of the opinion is an important contribution to Kazakhstan’s financial market infrastructure as the recognition encourages global and national institutions to carry out their derivative transactions from the AIFC.

Close-out netting is a legal mechanism used in the financial industry to mitigate risk in the event of a counterparty’s default. It allows parties in a bilateral agreement to offset their obligations against each other, calculating a net amount to be paid by one party to the other, rather than setting each obligation individually.

The AIFC Netting Regulations and the supporting provisions in other AIFC Acts provide firms with a high degree of legal certainty and comfort to trade with the AIFC firms leading to significant efficiencies and increased liquidity on the local market.

AFSA Chief Executive Officer Nurkhat Kushimov commented: “Publication of a netting opinion demonstrates that AFSA remains committed to working closely with international organisations to further develop the AIFC’s legal and regulatory framework, ensuring it remains at the forefront of financial innovation and services.”

“Ensuring the enforceability of close-out netting is the single most important step a country can take to improve the safety and efficiency of its derivatives market. The AIFC joins more than 80 jurisdictions worldwide to be covered by an ISDA netting opinion,” says Dr Peter Werner, Senior Counsel at ISDA.

Vassiliy Zenov, the head of Banking and Finance at Dentons in Kazakhstan commented: “We are pleased to issue the Netting Opinion in relation to the AIFC law for the benefit of the ISDA members, and therefore the AIFC netting regime should now be covered for close-out netting purposes. We are also delighted to be instrumental to the practical implementation of the AIFC law and its financial markets.”

The close-out netting opinion is not only a critical element for risk management in financial transactions. It is also a testament to the AIFC’s commitment to adopting international best practices and creating a safe, efficient, and globally competitive financial ecosystem.

In 2022, the ISDA published a country update on the AIFC jurisdiction, and the publication of the legal opinion by ISDA marks the formal recognition of the AIFC as a netting-friendly jurisdiction.

Reference:

Since 1985, ISDA has worked to make the global derivatives markets safer and more efficient. Today, ISDA has over 1,000 member institutions from 77 countries. These members comprise a broad range of derivatives market participants, including corporations, investment managers, government and supranational entities, insurance companies, energy and commodities firms, and international and regional banks. In addition to market participants, members also include key components of the derivatives market infrastructure, such as exchanges, intermediaries, clearing houses and repositories, as well as law firms, accounting firms and other service providers. Information about ISDA and its activities is available on the Association’s website: https://www.isda.org/. Follow us on X, LinkedIn and YouTube.

Dentons is a global legal practice providing client services worldwide through its member firms and affiliates. Across over 80 countries, Dentons helps you grow, protect, operate and finance your organization by providing uniquely global and deeply local legal solutions. Polycentric, purpose-driven and committed to inclusion, diversity, equity and sustainability, we focus on what matters most to you. Dentons’ global team builds agile, tailored solutions to meet the local, national and global needs of private and public clients of any size in more than 160 locations. Dentons is the leading global law firm in Central Asia. With a presence in Kazakhstan dating back more than 30 years, and offices in Almaty and Astana, our team has supported clients in many of the most important transactions and litigations in the market, while helping to shape the local business climate and practice of law. www.dentons.com.

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 2,500 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]

[1] An ISDA Master Agreement is the standard document regularly used to govern over-the-counter derivatives transactions. The agreement, which is published by the International Swaps and Derivatives Association (ISDA), outlines the terms to be applied to a derivatives transaction between two parties, typically a derivatives dealer and a counterparty.

The list of financial services that participants of the Astana International Financial Centre can provide to residents of Kazakhstan has been expanded. 12 February this year the National Bank of the Republic of Kazakhstan (NB RK), the Agency of the Republic of Kazakhstan on Regulation and Development of Financial Market (ARDFM) and the Astana International Financial Centre (AIFC) agreed on the relevant changes and additions to the AIFC Rules of currency regulation and provision of information on currency transactions in AIFC.” The amendments and additions are effective retrospectively from 1 January 2024[1].

The list of financial and professional services that AIFC participants can provide to the Kazakhstan market has been expanded. In particular:

The possibilities for AIFC participants to provide Islamic services have been expanded. Now along with AIFC Islamic banks, Islamic financing is allowed to Islamic financial organisations of AIFC (in any currency);
AIFC participants are granted the right to provide leasing services to residents engaged in agribusiness and road infrastructure construction (in any currency);
Within the framework of providing brokerage services on international stock markets, the AIFC participants are authorised to provide services not only relating to securities, but also relating to other types of investments, such as units of investment funds, commodity, derivative and carbon instruments (in any currency);
AIFC participants can now provide brokerage services on Kazakhstan securities if they have direct access to the central counterparty’s settlements (in any currency). Previously, in order to provide such services a participant had to have an ARDFM licence or direct access to settlements in the Central Securities Depository JSC.
Settlement and depository or custodial services of the AIFC Central Securities Depository can now be provided not only for securities included in the official list of the AIFC Exchange, but also for foreign securities (in any currency);
The process of investment and investment fund management is clarified. These services are to be provided by management companies having:
– a license of the Astana Financial Services Authority in respect of clients (investors) who are citizens and legal entities of Kazakhstan investing in securities of funds established in AIFC and included in the Official List of the AIFC Exchange or Kazakhstan Stock Exchange (in any currency);

– an ARDFM licence in respect of clients (investors) who are citizens and legal entities of the Republic of Kazakhstan investing in securities of funds established in AIFC and not included in the Official List of AIFC Exchange or Kazakhstan Stock Exchange (in any currency);

AIFC participants have a right to provide crowdfunding services as part of the management of an investment crowdfunding platform (in any currency);
AIFC participants have a right to provide services of crypto exchanges, brokerage, dealing and custody involving crypto assets as well as investment management with digital assets (in any currency).
The main additions and amendments relating to the procedure for currency transactions include the following:

AIFC banks (including Islamic banks) were granted the right to open correspondent accounts with Kazakhstan’s second-tier banks in both national and foreign currencies;
The conditions for payments and (or) transfers of money of clients of Islamic banks were expanded. Now clients of Islamic banks may carry out such operations not only on services related to Islamic finance, but also on other projects for which a client has attracted financing from this bank;
AIFC participants have the right to replenish their authorised capital through second-tier banks of RK in any currency and through AIFC banks in foreign currency;
Requirements for AIFC banks to request identifying documents and information (currency agreement, BIN, etc.) for payments and money transfers made between non-residents, unregistered and those not operating in the Republic of Kazakhstan were excluded;
Foreign currency exchange can now be carried out by brokers and dealers of AIFC, who have a licence to carry out exchange operations, as well as foreign banks. Previously, such operations could only be carried out by AIFC banks.

In terms of information interaction between AIFC and NB RK, the scope and terms of submitting reports to NB RK were adjusted.

The full text of the amendments and additions to the Rules can be found via this link.

AFSA Chief Executive Officer Nurkhat Kushimov said: “Financial flows between jurisdictions and organisations allow people to receive timely and quality services, develop their businesses, and effectively manage their finances, thereby improving the welfare of the entire country. Recent changes and amendments to the Rules of Interaction between AIFC and Kazakhstani jurisdiction will help bring greater clarity and predictability to the processes and procedures of financial services, facilitating the flow of critical resources for the development of the economy of the country and the region”.

The Rules were first adopted in November 2021. However, during the two years of their implementation, cross-jurisdictional issues between participants and bodies of AIFC and the financial market of Kazakhstan have accumulated. To address these issues, a task force was formed in January 2023 to develop amendments and additions to the Rules. The working group comprised AIFC, NB RK and ARDFM. As a result of regular meetings of the task force and public discussions with market participants, the regulators developed a number of amendments adopted 12 February 2024.

[1] In accordance with paragraph 5 of Article 5 of the Constitutional Law “On AIFC” – acts of the Centre in coordination with the National Bank of the Republic of Kazakhstan shall establish requirements for the provision of information on currency operations, as well as the procedure for information interaction between the bodies of the Centre and the National Bank of the Republic of Kazakhstan”. Also, this act is coordinated with the Agency for Regulation and Development of Financial Market in connection with the list of financial and professional services available in the act, which participants of the Center can provide to the market of Kazakhstan.

The Astana International Financial Centre is hosting a workshop “Cryptocurrency in Central Asia: Navigating FATF Recommendation 15 – Challenges and Best Practices”, which discussed ways to ensure safe and responsible use of cryptocurrency.

During the workshop, AFSA shared measures of developing an ecosystem for safe and responsible use of cryptocurrencies. As the only platform in Kazakhstan and the region that may regulate the digital assets industry, one of AFSA’s highest priority is providing a safe environment for conducting activities involving the use of digital assets. The recently adopted Digital Assets Activities Rulebook based on the results of the pilot project includes, among others, detailed requirements on the implementation of FATF’s “travel rule,”[1] prohibits the use of anonymous digital assets and devices and introduces annual independent IT-audit for digital asset service providers.

The workshop has attracted a diverse and distinguished group of participants from Kazakhstan, Kyrgyzstan, and Uzbekistan representing key stakeholders. These included financial regulators, central banks and financial intelligence units from the public sector of Kazakhstan, Kyrgyzstan and Uzbekistan. Law enforcements agencies from Kazakhstan included the Anti-Corruption Agency, the Ministry of Internal Affairs and Prosecutor General’s Office. The private sector was represented by financial institutions of AIFC and Kazakhstan such as commercial banks, digital assets exchanges, investment firms and other financial service providers.

Chief Executive Officer of AFSA Nurkhat Kushimov said: “By bringing together key stakeholders from both the public and private sectors, the workshop seeks to create a shared understanding of the intricacies of virtual asset risks and encourage more cooperation. The event aims to facilitate an exchange of knowledge and expertise, enabling regulatory and law enforcement agencies to stay ahead of emerging trends in illicit financial activities involving virtual assets. The emphasis on cross-border cooperation and the establishment of public-private partnerships underscores the importance of collective efforts in regulating and supervising the virtual asset sector.”

Kathy Leach, British Ambassador to Kazakhstan said: “I am delighted to welcome participants of today’s workshop, organized together with RUSI, the UK leading think tank in partnership with the Agency of Financial Monitoring and Astana Financial Services Authority. It is a continuation of our projects on Strengthening Kazakhstan’s Financial System with participation of regional partners from Uzbekistan and Kyrgyzstan. Today’s workshop is focused on Cryptocurrencies which are a small but significant and growing part of the financial system globally and in the Central Asian region. We are looking to future opportunities to continue our cooperation on Strengthening Kazakhstan’s Financial System”.

The workshop was organised by the Royal United Services Institute for Defence and Security Studies, the British Embassy in Kazakhstan, the Astana Financial Services Authority, and supported by the Agency for Financial Monitoring of Kazakhstan. The event is one of many in a series of capacity building events started in 2023 as part of a broader project on “Countering Illicit Finance in Virtual Assets” sponsored by the British Embassy.

Reference:

RUSI – The Royal United Services Institute.

FATF – an intergovernmental organisation that develops global standards in the field of combating money laundering and terrorist financing (AML/CFT), as well as assesses the compliance of national AML/CFT systems with these standards (Financial Action Task Force).

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 2,500 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]

[1] The FATF’s Travel Rule requires Digital Assets Service Providers, along with other financial institutions, to share relevant originator and beneficiary information from digital asset transactions, with the aim of preventing money laundering, terrorist financing, and other fraud activity.

The Astana Financial Services Authority (AFSA) alerts the public that the following email address: “[email protected]” is a fake email address in which AFSA is impersonated.

It came to the attention of AFSA that scammers used the email address to send fake messages, impersonating AFSA and the Astana International Financial Centre (AIFC), demanded monetary payments from recipients, threatened to impose financial penalty and to issue AIFC Court subpoena.

AFSA is responsible for the regulation of financial services and related activities in the AIFC. AFSA does not provide financial services.

The Astana Financial Services Authority encourages the public to check the Public Register, which contains business information of companies authorised and/or registered by AFSA, to ensure that the firm is authorised before using financial services/products.

If you have any concerns about the authenticity of any correspondence or you think you have been contacted by someone using scam, we suggest that you address your concerns to AFSA directly, through emails indicated at the official website of AFSA or by using the online form.

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 2,400 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), in collaboration with national regulatory authorities, is pleased to announce the formulation of comprehensive rules that enhance the interaction between a broader range of licensed entities within the Astana International Financial Centre (AIFC) and the commercial banks of Kazakhstan. This initiative marks a significant expansion from the initial Pilot Project, which was primarily focused on facilitating access for AIFC-licensed Digital Asset exchanges to Kazakhstani commercial banks.

The newly established rules extend their reach to encompass a wider array of Digital Asset Service Providers. This includes digital asset brokerage firms, asset and fund managers, as well as advisers, thereby amplifying the scope of entities that may engage with commercial banks in Kazakhstan. The uniqueness of the Rules is that they apply to the commercial banks within the nation.

These rules have been meticulously crafted in accordance with paragraph 6 of Article 11 of the Law of the Republic of Kazakhstan “On Digital Assets in the Republic of Kazakhstan,” underscoring a collaborative effort with national regulators. AFSA anticipates that these rules will usher in a more transparent and stable regulatory landscape, benefiting all participants within the digital asset ecosystem in both the AIFC and Kazakhstan at large.

This development is a direct outcome of the successful execution of the Pilot Project, which facilitated the integration of fiat channels for Digital Asset exchanges through Kazakhstani commercial banks. To date, the transaction volume of the Pilot Project is around US$200 million. The formulation of these new rules draws upon the invaluable supervisory insights gained during the Pilot Project and aligns with the pertinent stipulations of the Law on Digital Assets in the Republic of Kazakhstan.

These rules are a critical enhancement to the existing Digital Asset Activities Rulebook and the Guidance for AIFC Banks in their interactions with Digital Asset Service Providers, previously established by AFSA.

The implementation of these new rules will commence from 1 January 2024, marking a new era in the digital asset sector within Kazakhstan and the AIFC.

Commenting on this, AFSA Chief Executive Officer Nurkhat Kushimov said: “The Rules are a testament to joint work of AFSA, the National Bank of Kazakhstan and Agency for Regulation and Development of Financial Market. It once again demonstrates our aligned approach to the development of the digital asset industry in Kazakhstan. Our key expectation – making the AIFC more attractive to the global financial institutions”.

Managing Director and Chief FinTech Officer Yerkegali Yedenbayev: “The Pilot Project was a milestone achievement enabling AIFC Participants to work with the national banking infrastructure. The insights that we have obtained were used to inform the main concepts of the new Rules. It will give an additional boost to the digital asset industry in 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.

Around 2,400 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) has introduced its first comprehensive Stablecoin Framework, to take effect from 1 January 2024. It is a pivotal addition to the AIFC Rules on Digital Asset Activities. This framework is developed to ensure the robustness and stability of the digital asset landscape within the AIFC jurisdiction.

Within the Framework, AFSA allows the issuance of only fiat stablecoins backed by a single currency. It includes a Group of Ten currencies (Australian Dollar, British Pound Sterling, Canadian Dollar, Euro, Japanese Yen, New Zealand Dollar, Norwegian Krone, Swedish Krona, Swiss Franc and United States Dollar), RMB (Chinese Yuan) and any other currency agreed with AFSA. The framework encompasses critical aspects such as reference currencies, capital requirements, redemption rights, composition of reserve assets, and disclosure requirements.

The Stablecoin Framework has been developed in accordance with the recommendations of standard-setting bodies, including the Financial Stability Board, International Organization of Securities Commissions, Basel Committee on Banking Supervision, Committee on Payments and Markets Infrastructures, Financial Action Task Force, and Bank for International Settlements.

Moreover, the framework was developed considering best practices of leading regulatory bodies and feedback of current and potential participants gathered during public and targeted consultation periods.

The uses of stablecoins within the Digital Asset ecosystem have multiplied in recent years. As of June 2023, the total market capitalisation of stablecoins across all categories stands at $127.59 billion. Among the various types of stablecoins, fiat stablecoins remain dominant, with a market capitalisation of $119.79 billion. They account for the majority of the market share in terms of both market capitalisation and trading volume. Regarding the crypto exchanges in the AIFC sandbox, the trading volume of stablecoins constitutes the majority of overall trading of Digital Assets.

A key feature of a stablecoin is that it purports to have less volatility than other Digital Assets, allowing it to operate as a transfer of value within the Digital Asset ecosystem.  However, recent history, particularly the collapse of the largest algorithmic stablecoin in May 2022, has shown that stablecoins also present risks that require adequate systems and controls. Therefore, the introduction of the Stablecoin Framework is a significant step in fostering a secure and transparent digital asset environment within the AIFC. By aligning with global standards and considering the best practices of leading regulatory bodies, AFSA re-affirms its commitment to providing a conducive ecosystem for innovation and growth in the digital asset space.

Reference: 

Financial Stability Board (“FSB”) defines stablecoin as “a crypto asset that aims to maintain a stable value relative to a specified asset, or a pool or basket of assets”.

According to the enhancements made to the AIFC Glossary:

a Fiat stablecoin is a Digital Asset whose value purports to be determined by reference to a Fiat Currency or a basket of Fiat Currencies.

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 2,300 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 centres 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 developed the AIFC Security Token Offering Framework (the “STO framework”) to introduce a comprehensive regulatory regime that governs the issuance and trading of Security Tokens within the Astana International Financial Centre (AIFC). This further secures AFSA’s position at the frontier of the industry as it is one of the first regulators in the world to have adopted such a framework.

The STO framework aims to provide clarity, legal certainty, and investor protection in the field of Security Token offerings, fostering a secure and well-regulated environment for businesses and investors.

The STO framework is a natural follow-up product resulting from AFSA’s FinTech Lab experience where firms test their innovative ideas, including those involving security tokens.

Additionally, this framework seeks to align with international best practices and standards, enhancing the AIFC’s credibility as a global financial hub and promoting innovation in the digital space while mitigating associated risks.

The STOs market is fast developing and presents profound opportunities. The global listed trading volume of security tokens is expected to grow to $162.7 tn by 2030, with a total security token issuance worth more than $4 tn in the same period.[1]

AFSA Managing Director and Chief Legal Officer Ishaq Burney: “AFSA’s framework offers options to issuers and investors to issue and trade regulated distributed ledger technology securities, in accordance with international regulatory standards. STOs create opportunities for increased liquidity and efficient pricing, harnessing blockchain technology to enhance transparency, real time access to trading information.”

AFSA Managing Director and Chief FinTech Officer Yerkegali Yedenbayev: “Since STOs are based on blockchain technology, they help make transactions faster and reduce administrative costs, making it a cost-effective way to raise capital for Kazakhstan’s businesses, which have traditionally faced challenges in raising capital. For example, a few years ago within the regulatory sandbox one of AIFC’s security token exchanges successfully raised €6.75 million in just 9 seconds. Clearly, a well-regulated environment for new finance technologies such as STOs and others presents enormous potential for investors and businesses.”

The STO framework has been developed by introducing the following amendments to the AIFC Financial Services Framework Regulations, AIFC Market Rules, AIFC Authorised Market Institution Rules, AIFC Conduct of Business Rules, AIFC Collective Investment Scheme Rules and AIFC Glossary are published on the AIFC website and will come into force on 1 January 2024.

Reference: 

Security Token is a digital representation of a Security or Unit, that is issued, transferred and stored using Distributed Ledger Technology or other similar technology approved by AFSA.

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 2,300 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] https://shorturl.at/bdiG0

Entities applying to obtain a License to carry on the Market Activities of “Operating a Loan Crowdfunding Platform” and “Operating an Investment Crowdfunding Platform” (Crowdfunding activities) will be subject to the full regulatory regime and approach AFSA Authorisations rather than AFSA FinTech Lab as per Notice № AFSA-F-NB-2023-0012 issued on 20 December 2023, with immediate effect.

AFSA FinTech Lab Participants that previously obtained licenses for Crowdfunding activities have been successfully testing their projects within the environment of AFSA’s FinTech Lab for several years now.

Overall, FinTechLab has granted 10 licenses for crowdfunding activities throughout the operation of the regulatory sandbox. Currently, there are four platforms that test their business models in Fintech Lab.

Throughout this time crowdfunding firms have demonstrated their status as well-established business models in the AIFC’s financial services industry.  Following this testing period in the Fintech Lab environment, AFSA has adopted a comprehensive regulatory framework for Crowdfunding activities. It is noteworthy that by the end of the third quarter of 2023, crowdfunding platforms in AIFC financed over 300 projects worth around 35 million USD.

Crowdfunding-backed projects are found in diverse sectors, including IT, construction, wholesale and retail trade, agriculture, services, manufacturing, and engineering. This broad interest underscores the vital role that crowdfunding plays in economic development, fund re-distribution, and SME financing.

Legal clarity under the existing regulatory regime allows for application for crowdfunding activity without testing under the limited FintechLab environment. Therefore, recently AFSA reviewed cases of both smooth graduation of sandbox residents to full authorisation regime and the “onboarding” of crowdfunding platform directly to the full-scale regulatory regime. 

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 2,300 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 amendments take effect from 1 January 2024 and mainly include amendments to supervision fees and fees payable to the Registrar of Companies and provide greater clarity on the application of the fees.

New fees have been introduced with regards to the development and enactment of several frameworks from 2024 onwards. They include the Digital Assets Service Providers (DASP), the Digital Assets Trading Facility (DATF), the Stablecoins and the Security Token Offering (STO) Frameworks. The annual supervision fee for the DATF Operators, which have been working within the FinTech Lab regime only, has therefore been revised by decreasing the fixed fee and introducing a variable component proportionate to market performance.

The changes have affected FinTech Lab Participants, which will be required to start paying the full supervision fee in case of extending their FinTech licence beyond two years of its issuance.  AIFC Rules provide for the issuance of a FinTech Lab licence for two years.

The annual supervision fee for the Market Activity of Operating a Clearing House now covers the clearing value component. Also, relevant adjustments have been made to the annual recognition for a Recognised Non-AIFC Clearing House Operator accordingly.

Other amendments include changes on application fee of licence modification, providing clarifications on calculating supervision fees, additional application and supervision fees payable to AFSA and the Registrar of Companies as well as other technical revisions.

In 2022, AFSA commenced to charge supervision fees for Regulated, Market and FinTech Lab Activities in the AIFC. Over the course of 2023, AFSA has received various comments and queries regarding the application of fees in the AIFC, which have highlighted the need of amending certain parts of fees and greater clarity in the calculation of fees.

AFSA Chief Executive Officer Nurkhat Kushimov: “The amendments are a result of two public consultations with the industry and extensive coordination work with our participants. Our objective is to have an approach that would be proportionate to various firms wishing to test out new business models and solutions while remaining committed to the highest regulatory standards. As such, the new amendments reflect continued development of the regulatory ecosystem at AIFC, its more complex and refined approaches.”

The full package of changes to the AIFC Fees Rules may be found via the link.

The amendments will be effective from 1 January 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 2,300 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]