AIFC & AFSA · Digital Assets Regulation

AFSA Digital Assets Licensing

Part of Bond Stone's AFSA Licensing Practice

The Astana International Financial Centre (AIFC) has its own digital asset framework, administered by the Astana Financial Services Authority (AFSA). Firms licensed under it are supervised by AFSA and have access to the AIFC Court for disputes. Bond Stone advises exchanges, wallet operators, token issuers, custodians and fintech platforms on licensing, structuring and ongoing compliance.

Digital Asset Regulation at the AIFC

The AIFC's digital asset framework is built on the AIFC Rules on Digital Asset Activities (DAA), read with the AIFC General Rules and the overarching AIFC Financial Services Framework Regulations. AFSA is the independent regulatory authority responsible for authorising and supervising all regulated financial services activities conducted within or from the AIFC, including activities involving digital assets.

The DAA applies to ten Regulated Activities carried out in or from the AIFC in relation to Digital Assets: Operating a Digital Asset Trading Facility, Dealing in Investments as Principal, Dealing in Investments as Agent, Managing Investments, Managing a Collective Investment Scheme, Providing Custody, Arranging Custody, Advising on Investments, Arranging Deals in Investments, and Providing Money Services. A firm operating a trading facility is a Digital Asset Trading Facility Operator; a firm licensed for the other activities is a Digital Asset Service Provider. The firm's AFSA Licence must cover each activity it carries on.

Importantly, the AIFC Glossary distinguishes Digital Assets, which include Fiat stablecoins, Commodity stablecoins, and Utility Tokens, from Investment Tokens, which are digital representations of Investments such as Security Tokens and Derivative Tokens. The regulatory treatment — and the applicable licence category — depends on what the token represents, not solely its label. Where classification is uncertain, a regulatory opinion before launch is advisable.

Licensed Activities Under the DAA

The main Regulated Activities in relation to Digital Assets, each subject to capital, systems, and governance requirements, are:

Issuers of Fiat stablecoins must hold an AFSA Licence for Providing Money Services and comply with Part 4 of the DAA: capital of at least USD 200,000, ongoing capital of 2% of average outstanding stablecoins, a reserve of assets, and a white paper.

Token Classification: Investment Tokens, Stablecoins, and Utility Tokens

Classify the token first. The starting point is the definitions in the AIFC Glossary and the DAA:

Investment Tokens are digital representations of Investments, including Security Tokens (a Security or Unit) and Derivative Tokens. They fall within AFSA's investment business framework and trigger the full suite of market conduct, prospectus, and dealing obligations. Offering Securities other than as AFSA Rules provide, or carrying on a Regulated Activity without a Licence, is a contravention of the AIFC Financial Services Framework Regulations, for which AFSA may impose fines, censure, and directions. The AIFC Court has no jurisdiction in criminal proceedings.

Stablecoins are Digital Assets, which the Glossary distinguishes from E-money. A Fiat stablecoin's value purports to be determined by reference to a Fiat Currency, and a Commodity stablecoin's by reference to a Commodity. Issuance falls under Part 4 of the DAA, which covers reserves, the white paper, and redemption rights. Issuing stablecoins that aim to maintain a stable value through protocols that increase or decrease supply in response to demand is prohibited (DAA 4.11.4).

Utility Tokens are Digital Assets that the holder can use only to pay for, receive a discount on, or access a product or service provided by the issuer or its Group. An Authorised Firm may not carry on an activity related to a Utility Token or Non-Fungible Token, except that a Digital Asset Service Provider authorised to Provide Custody may provide custody of them (DAA 3.12).

Bond Stone prepares regulatory opinions on token classification, which can support a discussion with AFSA before launch.

Capital, Governance, and Substance Requirements

The main requirements for obtaining and keeping a digital asset licence are:

Regulatory capital: A Digital Asset Trading Facility Operator must hold the higher of USD 200,000 or 12 months' operating expenses. Providing Custody in relation to Digital Assets requires USD 250,000, and other activities range from USD 10,000 to USD 250,000 (DAA 2.2 and 3.2). AFSA may direct a Digital Asset Service Provider to meet additional requirements (DAA 3.14).

Physical substance: An AIFC-registered entity with a registered office in the AIFC, whose territory lies within the city of Astana; a Money Laundering Reporting Officer ordinarily resident in Kazakhstan; a Senior Executive Officer who spends an appropriate amount of time in Kazakhstan; and real operational decision-making in the AIFC. A letterbox structure will not meet these expectations.

Fit-and-proper assessment: AFSA individually assesses Controllers (holders of 10% or more of shares or votes, or of significant influence), directors and Approved Individuals. Adverse regulatory findings, undisclosed PEP status or sanctions exposure can block approval.

Technology and cybersecurity: AFSA expects documented technology governance, penetration testing, business continuity plans, and a clear operational resilience framework before authorisation. Custodians should expect to document their wallet architecture.

AML/CFT Obligations for Digital Asset Operators

Digital asset businesses are Virtual Asset Service Providers (VASPs) under FATF standards and are subject to AFSA's AML/CFT Rules, which are aligned with the FATF Recommendations as updated through the 2019 VASP guidance and subsequent revisions.

Core obligations include: customer due diligence (CDD) and enhanced due diligence (EDD) for high-risk customers, beneficial ownership verification for corporate clients, transaction monitoring with automated alert thresholds calibrated to digital asset risk, and Travel Rule compliance for Digital Asset transfers, with full originator and beneficiary information required at USD 1,000 or more and a reduced set below that amount (AML 11-1.1). In practice, firms commonly meet this through a recognised Travel Rule protocol provider.

AFSA supervises AML/CFT programmes. Where it finds misconduct, its sanctions include prohibition, withdrawal of approval or authorisation, public censure and financial penalties, and it publishes licence suspensions and withdrawals on its Notice Register.

AIFC Digital Asset Licence vs Offshore Structures

A common structuring question for digital asset businesses entering Central Asia is whether to use an AIFC licence, an offshore vehicle (BVI, Cayman, or a UAE VASP registration), or a domestic Kazakhstani entity licensed or registered by the National Bank.

An AIFC licence offers a legal framework based on English common law, access to the AIFC Court, and published rules for token issuance and exchange operations. An offshore vehicle gives no authorisation to serve users in Kazakhstan. Neither does an AIFC licence by itself: see below.

Since 1 May 2026, the Law on Digital Assets in the Republic of Kazakhstan (No. 193-VII of 6 February 2023, as amended by Law No. 259-VIII of 16 January 2026) has set a national regime outside the AIFC. It divides digital assets into digital financial assets and unsecured digital assets. The National Bank of Kazakhstan (NBK) licenses operators of exchange of unsecured digital assets and registers operators of digital asset trading platforms and digital financial asset platforms; the Agency for Regulation and Development of the Financial Market (ARDFM) regulates digital financial assets other than stablecoins. The AIFC keeps its own regime for AIFC Participants. An operator wishing to serve both international clients (USD/EUR/crypto) and domestic Kazakhstani users may structure with an AIFC entity (AFSA-licensed) for international flows and a separate NBK-licensed or registered entity for domestic tenge operations.

Licensing Timeline and Process

A well-prepared AFSA digital asset licence application proceeds in three phases. Pre-application engagement (regulatory scoping, entity structuring, token classification opinion) takes 4–8 weeks. Formal application preparation — compiling the licence application pack, policies, procedures, AML/CFT programme, technology governance documentation, and Approved Individual submissions — takes a further 6–10 weeks. The Framework Regulations set no fixed statutory review period; AFSA states that its average processing time is around two to three months from receipt of a materially complete application, excluding time spent waiting for the applicant, and that timing depends on complexity and application quality. Total timeline from instruction to licence grant: typically 6–9 months for a straightforward exchange or custodian application; longer for novel token structures or where AFSA issues multiple information requests.

Frequently Asked Questions

Digital Asset Licensing — Selected Experience

Bond Stone has guided exchanges, custodians, token issuers, and embedded-finance platforms on AFSA digital asset licensing, from initial token classification through to post-licence supervisory compliance. The matters below are examples of the mandates our team has handled.

Related Guides

• AFSA Payment Services Licensing — Money Services, E-Money, and Payment Platforms
• AFSA Capital Markets Licensing — Securities Dealers, Fund Managers, and Investment Advisers
• AIFC Company Formation — Incorporating a Private Company in the AIFC
• AFSA Licensing Overview — All Regulated Financial Services Categories