Register a Crypto License in Kazakhstan

Kazakhstan, one of the largest and most developed economies in Central Asia, pays close attention to regulating cryptocurrencies. Since the first cryptocurrency (Bitcoin) emerged, this field has continued to evolve, change, gain momentum, and attract excessive interest from investors and governments. Despite the mixed global attitude towards crypto, Kazakhstan has decided to join the countries that do not prohibit digital assets but regulate their issuance and circulation.

Anyone can register a crypto license in Kazakhstan and take advantage of its wide opportunities. With a special permit for crypto activities in this country, entrepreneurs will have access to a well-developed infrastructure and the opportunity to collaborate with advanced financial institutions. Additionally, a crypto license in Kazakhstan provides access to financial instruments for effective management of crypto assets and overall business. You can quickly and efficiently complete the registration process with minimal time and financial investment by seeking qualified assistance from the Lawrange Law Firm. With us, the registration process will be fast, without unnecessary financial expenses and worries.

Kazakhstan: Cryptocurrency License and its Benefits

The choice of Kazakhstan as a country for launching a crypto project is driven by a combination of economic, legal, and infrastructural factors.

The state demonstrates a steady interest in fintech and digital services, consistently adapting its legal framework to modern models of working with digital assets. Entrepreneurs seek to obtain a crypto license in Asia, as they are focused on long-term development and clear rules of the game.

The issuance of digital assets in Kazakhstan is carried out through the lens of the Astana International Financial Centre (AIFC). All the tools and levers needed to attract and support various financial institutions, including crypto companies, are concentrated in this special economic zone. The AIFC offers regulated business activities to crypto projects, utilizing modern infrastructure, extensive collaboration opportunities, and expert consultations on blockchain technology. The regulation of the cryptocurrency market is overseen by the Astana Financial Services Authority (AFSA).

Favorable Tax Regime

Obtaining a crypto license in Kazakhstan exempts entrepreneurs from paying value-added tax and property tax. This favorable regime is effective until 2066. Due to the absence of additional tax burdens, this country attracts many foreign investors in the cryptocurrency sector.

Stability of Legislative Framework

Kazakhstan effectively regulates cryptocurrency activities through a series of special laws that have been in place since 2018. As of April 1, 2023, another legislative provision was implemented, making the regulation of the cryptocurrency sphere comprehensive and truly modern. For the next 2-3 years, this legislative framework will serve as a stable foundation for conducting fully legal activities with unsecured digital assets.

Building an Excellent Reputation

Currently, the AIFC is among the leading Central Asian financial hubs. Registering a crypto company in Kazakhstan presents your crypto business in the best light to potential partners, investors, and clients. Additionally, due to the country’s location at the intersection of European and Asian routes, engaging in licensed crypto activities opens doors to various markets for entrepreneurs.

Simplified Visa and Labor System

Employees of companies registered in the AIFC, as well as their family members, can enter the country under special visa rules for up to 5 years. They do not need to obtain a work permit as foreign employees. This approach allows Kazakhstan to actively attract highly qualified specialists, contributing to economic development. Entry into the country is much easier for foreigners thanks to the special center that provides more than 500 services.

Simplified Currency Regime

Participants in the AIFC are not required to comply with currency legislation when registering relevant transactions or opening accounts in foreign banks. This regime allows participants in the special economic zone to fulfill obligations using any currency specified in the contract.

Obtaining a Cryptocurrency License in Kazakhstan

The licensing process includes several stages and requires a professional approach. The procedure is similar to obtaining a gambling license in Kazakhstan, as the state pays particular attention to financial stability and risk management.

The first step for applicants seeking a cryptocurrency license is registering a legal entity and opening a local bank corporate account. The firm must have a Kazakhstani legal address, registered capital, and a complete management team. It is necessary to hire an executive, financial, and technical director. The business owner can take on these roles if they possess the required education and experience.

Several important requirements must be met to obtain a cryptocurrency license in Kazakhstan:

• The company must have an anti-money laundering officer and a regulatory compliance specialist on staff. Only residents can fill these positions.
• The presence of a developed digital platform capable of identifying customers and blocking suspicious transactions.
• Implementation of customer identity verification (KYC), prevention of terrorism financing, and anti-money laundering (AML) procedures in accordance with the country’s legislation.

In Kazakhstan, registration is possible for either a new company or a representative office of a foreign legal entity.

Application Process

Obtaining a cryptocurrency license in Kazakhstan requires filling out the relevant application submitted to the Astana Financial Services Authority (AFSA). The document should include detailed information about the firm and its activities. The applicant must describe the company’s structure, develop risk control procedures, and outline measures to combat various forms of fraud. Along with the application, the applicant must submit a business plan, the company’s articles of incorporation, financial statements, management passport details, and other documents as evidence of the reliability and legitimacy of the legal entity.

Financial Guarantee with Risk Assessment

Such a guarantee means that your company can meet its financial obligations to clients. The form of financial guarantee may include:

• Banking security.
• Collateral and other financial instruments.

The regulator requires the applicant to conduct a risk assessment and demonstrate the measures that will be taken to control them, including procedures for income legalization and prevention of terrorism financing, among others.

Internal Control

At this stage, you must provide evidence to the regulator that the enterprise has an effective means of controlling internal activities and maintaining accurate records. This involves developing and practically implementing effective methods to detect suspicious transactions, followed by reporting them to the regulatory body.

It is recommended to implement mechanisms for the automatic analysis of transactions, which makes it possible to identify anomalies in a timely manner and increases the transparency of operations. The presence of qualified personnel and an appointed director with industry-specific work experience strengthens trust in the company on the part of supervisory authorities. Transparent reporting and regular audits help ensure compliance with international standards, increasing the reliability of operations.

Obtaining a cryptocurrency license in Kazakhstan demonstrates a commitment to complying with industry requirements. Establishing an effective internal control system becomes a competitive advantage and a strategic tool for business scaling and entry into international jurisdictions.

Auditor’s Verification

An important licensing condition is the examination of the legal entity after all required documents have been submitted. AFSA analyzes financial statements, internal control systems, the effectiveness of income legalization procedures, and other aspects of the firm’s activities. A cryptocurrency license in Kazakhstan is granted only if each requirement is adhered to by the applicant. Subsequently, the licensed firm must operate strictly in accordance with legislative norms.

Document Requirements for Registering a Cryptocurrency Company in Kazakhstan

To obtain a crypto license, it is necessary to prepare a package of specific documents. Each certificate, statement, report, and other types of submitted documentation must be correctly formatted and signed by authorized individuals. In the case of electronic application submission, scanned copies of the documentation are submitted through the personal account on the AIFC website. The paper submission option involves sending documents via a courier service to the physical address of the AIFC, considering that delivery may take a certain amount of time.

Charter (Articles of Association)

This founding document describes the rules of the company’s operation and the specifics of interaction among its participants. It includes the legal entity’s name (including any abbreviations), the size of the authorized capital, the shares of participants, the competence of members of the general meeting, and the rights and obligations of participants, among other details.

Business Plan

This crucial document should reflect the essence of the business idea and demonstrate its viability. Analyzing the business plan allows the regulator to understand how well the applicant comprehends the correctness of actions required to launch the project and operate it until stable profitability is achieved. To create a business plan, it is important to study the specifics of the cryptocurrency market in Kazakhstan, local legislation, and target audience, as well as develop a strategy for the cryptocurrency company’s operation for the next 3 years.

Information about Owners and Directors

To apply for a cryptocurrency license in Kazakhstan, information about the applicant (and other co-owners, if any) and directors must be provided, including:

• Copies of internal and international passports.
• IDs (tax identification numbers) of directors.
• Certificates of no criminal record (may be required in certain cases).
• Copies of diplomas confirming the relevant education.

The regulator may also inquire about the lease agreement for premises within the AIFC, which serves as a confirmation of the company’s registration address. Proper document preparation contributes to expediting the licensing process and obtaining a positive decision.

Compliance Requirements: Reporting and AML/KYC Compliance

For companies working with digital assets, compliance becomes not a formality but a part of everyday business processes. Within the licensing framework, particular attention is paid to how deeply AML/KYC procedures are implemented and how they are applied in practice.

The regulatory rules governing activities in Kazakhstan and the crypto license issued here imply a company’s readiness for ongoing supervision and transparent interaction with the regulator, rather than merely meeting requirements at the application stage.

Elements of the compliance system include:

• identification and verification of clients, taking into account risk levels and the nature of transactions;
• continuous transaction monitoring using automated tools;
• internal policies for the prevention of money laundering and the financing of prohibited activities;
• regular preparation and submission of reports to authorized authorities;
• appointment of a responsible compliance officer and control over adherence to procedures;
• storage of data and documentation for the established periods while ensuring their confidentiality.

An effectively structured compliance model not only reduces risks but also increases trust from banks, partners, and clients, which directly affects the stability and development of a cryptocurrency project.

Specifics of Regulating Cryptocurrency Exchange Operations

Over the past few years, significant changes have occurred in Kazakhstani cryptocurrency legislation. In 2020, a law regulating the digital asset market was approved, providing legal status to backed and unbacked digital assets, issuers, and exchanges. The modernization of the legal framework continued in 2023 with the enactment of a new law requiring cryptocurrency exchanges and other entities in this field to obtain licenses.

The supervisory authority responsible for compliance with the law is AFSA. This organization establishes requirements and conditions that every entity wishing to conduct cryptocurrency business in Kazakhstan must adhere to. The regulator’s responsibilities include:

• Setting minimum requirements for authorized capital to ensure the financial stability and reliability of licensees, thereby guaranteeing the protection of user and investor interests.
• Establishing liquidity requirements for companies to fulfill their obligations to shareholders, investors, and clients when this condition is met.
• Consumer rights protection — everyone involved in creating a cryptocurrency company in Kazakhstan and other stakeholders must adhere to rules ensuring the reliability and transparency of various operations and services. Participants in the cryptocurrency business must also have access to effective dispute resolution mechanisms.
• Ensuring security — involves implementing standards and requirements to protect information belonging to clients of the cryptocurrency company. The company must strictly comply with these standards in accordance with existing legislation. AFSA monitors how effectively and correctly a particular enterprise opposes risks related to fraudulent activities and crime financing.
• Continuous development of a new regulatory framework — the cryptocurrency sector is in a stage of rapid development. Therefore, it is crucial for the regulator to propose market participants with up-to-date standards and requirements. Only in this case can the cryptocurrency market fully develop, becoming a favorable environment for implementing innovative technologies.

Based on the above, the critical role of AFSA in ensuring cryptocurrency firms’ safe, stable, and transparent operation becomes evident.

Opening a Bank Account for Cryptocurrency Companies in Kazakhstan

The country has two groups of banking institutions — local and branches of foreign banks. Non-residents can avail themselves of the services of any of them, provided they prepare in advance:

• A valid license, confirming that the company operates within the legal framework.
• Corporate documentation – banks are interested in everything related to the legal entity, starting from its status, registration, and organizational-legal form to the number of shareholders and founding documents.
• Documents confirming the applicant’s residential address.

Additional requirements may be imposed, such as achieving minimum account turnover thresholds, having insurance, and complying with certain international standards and regulatory obligations.

Any bank you choose for account opening will be interested in thoroughly examining your crypto company. Detailed analysis will help determine how well the legal entity meets banking requirements, such as whether the company uses legal sources of income or implements effective measures to combat money laundering. It generally takes 1-2 weeks to open a corporate account.

Taxation of Cryptocurrency Companies in Kazakhstan

Taxation of cryptocurrency companies in Kazakhstan is based on a combination of standard tax rules and special provisions applicable to the digital industry. You are required to pay corporate income tax (CIT) at the general rate of 20% on profits derived from activities conducted within the territory of the country, unless otherwise provided by tax incentives or special regimes.

Crypto companies are obliged to maintain full accounting records in accordance with the requirements of the Tax Code. It is important to note that income from transactions with digital assets is not always determined solely on the basis of actually received monetary funds. In certain cases, the tax base is formed based on the number of digital assets multiplied by their official value as of the date the income is recognized.

As for value-added tax (VAT), transactions involving digital assets in certain cases are not recognized as subject to VAT or are exempt from it, depending on the nature of the transaction. This approach allows for a reduction in the tax burden on businesses; however, it requires proper qualification of transactions and compliance with the established conditions.

In addition to CIT and VAT, special obligations are предусмотрены for certain types of activities. For example, companies engaged in crypto mining are required to pay a tax on the electricity used for the extraction of digital assets at special rates. The amount of such payment is not fixed and depends on the source of electricity and other criteria established by law.

Legal entities are also required to account for social contributions for employees. As a rule, this amounts to approximately 11% of the payroll fund, which is considered standard practice for employers in Kazakhstan.

Finally, the tax system requires detailed accounting of all transactions and accurate record-keeping: it is important to record dates, exchange rates, and transaction amounts in order to correctly declare income and expenses and remain in compliance with applicable regulations.

Advantages of Cooperation with Lawrange

The Lawrange team consists of professionals with extensive experience and knowledge, ensuring that opening a cryptocurrency company and obtaining a license in Kazakhstan fully comply with current legislation.

Our main advantages:

• Professionalism.
• Confidentiality guarantee.
• Comprehensive solution to the set task.
• Availability and transparency.

With our assistance, you can avoid unnecessary mistakes that could prolong the licensing process:

• An incomplete set of documents.
• Incorrect preparation of a business plan.
• Non-compliance with security standards.
• Incorrect assessment of the company’s financial condition.
• Missing deadlines.

With Lawrange, such issues are not a concern, as our qualified specialists constantly monitor changes in current legislation and other essential aspects of the functioning of the cryptocurrency sphere in Kazakhstan. We will help develop the right business plan, gather a complete set of documents, and meet application deadlines.

Conclusions

A cryptocurrency license in Kazakhstan allows for legal operation in the local cryptocurrency environment, which the government regulates quite rigorously. Thanks to special laws, crypto assets in this country have a clearly defined legal status, making working with them more understandable and secure. With a cryptocurrency license, foreign entrepreneurs can provide a range of services related to the exchange, storage, and purchase of digital currencies.

To obtain permission to work with crypto assets, you need to compile a package of necessary and correctly formatted documentation. The licensing process can be simplified with the support of the Lawrange Law Association, whose specialists will do everything necessary to launch your cryptocurrency business as quickly as possible.

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