Unlocking the Future of Crypto: Embrace Kazakhstan's Promising Frontier
In recent years, Kazakhstan has positioned itself as one of the most alluring jurisdictions for crypto companies. Due to a comprehensive regulatory system and a streamlined process for obtaining crypto licenses, the country offers a fertile ground for businesses seeking a secure and forward-thinking environment. In this article, we explore the primary factors that position Kazakhstan as a favorable choice for crypto companies. We sought insights from an expert in FinTech law and business development Mark Gofaizen, Senior Partner in Gofaizen & Sherle, who highlighted the significant advantages, including a strong regulatory framework, and plentiful business prospects.
Part 1: Kazakhstan's Progressive Regulation
Kazakhstan has taken decisive steps to establish a comprehensive regulatory framework for cryptocurrency activities. The Law on Digital Assets, effective since April 1, 2023, serves as the cornerstone of this legal ecosystem. It aims to create a secure environment that controls the issuance and circulation of digital assets within the country. While Kazakhstan prohibits the issuance and circulation of unsecured digital assets, an exception is made for the Astana International Financial Center (AIFC). This unique provision enables the legal operation of cryptocurrency activities within the AIFC under the "Operating a Digital Asset Trading Facility" license.
Under the purview of the Astana Financial Services Authority (AFSA), the main financial regulator within the AIFC, licensed cryptocurrency companies in Kazakhstan can engage in activities such as the purchase, sale, and exchange of cryptocurrencies, accepting and transferring payments in digital currencies. To ensure compliance, the legislation mandates customer identification, anti-money laundering measures, and anti-terrorist financing practices. By adhering to these regulations, crypto companies can operate with confidence in Kazakhstan's secure and transparent market.
Part 2: Abundant Opportunities for Crypto Companies
Kazakhstan presents a host of opportunities for crypto companies looking to thrive in a supportive environment. The country offers a favorable tax regime specifically designed to attract investment and foster the development of the financial services market. Crypto license holders operating within the AIFC are granted exemptions from income and property taxes until January 1, 2066. This lucrative incentive eliminates additional tax burdens and incentivizes companies to establish a presence in Kazakhstan.
Moreover, Kazakhstan's sustainable legislative framework ensures stability and predictability for businesses operating in the crypto sector. With a comprehensive set of legal provisions that have been in place since 2018, Kazakhstan has demonstrated a commitment to fostering a reliable and contemporary regulatory system. The recent revision of the law in 2023 further strengthens this framework, aligning it with global benchmarks and instilling confidence in investors and industry participants. This stability is expected to persist over the next 2-3 years, offering a solid foundation for crypto companies to flourish.
Part 3: Streamlined Crypto License Acquisition Process
Kazakhstan streamlines the process of obtaining a crypto license, making it an attractive jurisdiction for companies seeking efficient market entry. The AIFC offers a simplified visa and labor regime, allowing employees of AIFC bodies and participants, as well as their family members, to enter Kazakhstan under a special visa regime for up to 5 years. Furthermore, foreign employees do not require a work permit, facilitating the attraction of highly skilled professionals to contribute to the growth of the financial sector.
AIFC also provides a convenient and expedited registration process for foreign citizens, including visa issuance and work permit procedures. The establishment of the Expat Center in Kazakhstan enhances the efficiency of these processes, offering over 500 services to foreign nationals. Additionally, the AIFC participants are exempted from certain currency legislation requirements, enabling the fulfillment of contractual obligations in any currency specified in the agreement.
Kazakhstan has positioned itself as an attractive jurisdiction for crypto companies by implementing a comprehensive regulatory system, providing abundant opportunities, and offering a streamlined process for obtaining crypto licenses. With its progressive regulation, favorable tax regime, stable legislative framework, and simplified entry.
If you're in need of a crypto-friendly jurisdiction that embraces openness and provides support for your project, Kazakhstan should be on your radar. Take the first step towards acquiring a license in Kazakhstan and leverage the benefits of its favorable ecosystem. For up-to-date information on obtaining the license, we invite you to visit our website.