The AIFC has published the AFSA Manual on over-the-counter transactions

On March 29, 2024, the AIFC Financial Services Regulatory Committee (Astana Financial Services Authority, AFSA) published the AFSA Guidance for Over-the-Counter Transactions with Digital Assets (AFSA Guidance for Over-the-Counter Transactions with Digital Assets).

The purpose of this document is to provide a broader interpretation in relation to over-the-counter transactions with digital assets (OTC platforms).

This type of activity can be carried out on the basis of a broker/dealer license for digital assets.

In case of combining the activities of the OTC platform with any other activity, additional permission for the OTC platform will be required.

It is recommended to create separate segments for OTC platforms within their platforms.

When carrying out OTC activities, the principle of "Best Execution" must necessarily apply. This principle means that all necessary steps must be taken to obtain the best possible result for the Client of the OTC Platform.

The document also regulates the interaction of OTC platforms with digital miners and digital mining pools. 

When making transactions with digital miners and/or digital mining pools, the OTC platform must classify them as retail customers, professional customers or market counterparties.

The OTC platform must ensure the collection of documents confirming the legal status and bona fide position of digital miners or digital mining pools at the registration stage, and ensure that these documents are updated in a timely manner.

In addition, the OTC platform, when working with digital miners or digital mining pools, must consistently apply measures to manage and reduce the identified risks, taking into account both local and foreign legislative and regulatory requirements.

The head of the KABT, Dauren Karashev, positively assessed the appearance of such a tool as OTS on the platforms licensed in the AIFC for working with cryptocurrencies. It is this tool, in cooperation with digital miners and digital mining pools, that will become the defining impetus and factor for the rapid development of the Kazakh crypto industry and the consolidation of Kazakhstan's leadership in the Central Asian region.

Recall that according to the Law "On Digital Assets in the Republic of Kazakhstan", digital assets obtained as a result of digital mining activities in Kazakhstan from January 1, 2024 to January 1, 2025 – in the amount of at least fifty percent, and from January 1, 2025 in the amount of at least seventy-five percent are subject to mandatory sale through licensed Kazakhstani crypto exchanges.