AFSA

06 October 2023 11:45:58

The Astana Financial Services Authority (AFSA) has issued two Consultation Papers to seek suggestions from the market on the proposed:

1. Rules and mechanisms of cooperation of Unbacked Digital Asset Exchanges and/or the Centre Participants authorised to carry out digital assets-related activities with second-tier bank of the Republic of Kazakhstan (AIFC Rules). (“Rules of cooperation”). To read the paper please follow this link.
2. List, timing and procedure of report submission by digital asset exchanges of the Astana International Financial Centre (AIFC Rules). (“Rules of reporting for cryptoexchanges”). To read the paper please follow this link.

The proposals in these papers will be of interest to current and potential AIFC participants, second-tier banks of Kazakhstan as well as wider digital asset market and stakeholders.

The amendments to the Constitutional Law of Republic of Kazakhstan “On Astana International Financial Center” № 176-VII adopted on 30 December 2022 (that came into force on 01 April 2023) required implementing these Rules. These Rules are aimed to provide a legal framework for Digital Asset Service Providers cooperating with commercial banks of Kazakhstan following completion of the Pilot project for the cooperation of the cryptoexchanges with second-tier banks of Kazakhstan (“Pilot Project”).

Proposed draft Rules were developed taking into consideration feedback received from Pilot Project, Pilot Project Rules, AIFC Rules and Regulations, Acting Law of Kazakhstan and recommendations of relevant standard-setting bodies, such FATF and IOSCO.

Proposed draft Rules were developed taking into consideration feedback received from Pilot Project, Pilot Project Rules, AIFC Rules and Regulations, Acting Law of Kazakhstan and recommendations of relevant standard-setting bodies, such FATF and IOSCO.

The proposed amendments in this Consultation Paper on Rules of cooperation contain the following proposals regarding the:

• Rules describing procedures for opening of the accounts in commercial banks of Kazakhstan by cryptoexchanges and other digital asset service providers authorized in AIFC;
• Client classification, capital, admission of digital asset to trading, client asset segregation requirements and reference to other AIFC rules and regulations;
• Documents (or reference to Acting law of Kazakhstan) that must be requested by commercial banks of Kazakhstan at the opening of account from cryptoexchanges and DASPs;
• Anti-money laundering and terrorist financing requirements that are applied during establishment of business relations with cryptoexchanges and DASPs;
• Reporting requirements by second-tier banks of Kazakhstan to NBRK;
• Prohibitions or limitations on certain digital asset-related products on Retail clients – residents of Kazakhstan.

The proposed amendments in this Consultation Paper on Rules of reporting for cryptoexchanges contain the following proposals regarding the:

• detailed requirements on cryptoexchanges to disclose financial and other performance data to AFSA and NBRK.
• submission on a monthly basis data on trading volumes, number of clients, volume of custodied assets etc.

We invite comments from interested stakeholders.

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]