Article 6. Issue and circulation of digital financial assets of the Law on Digital Assets in the Republic of Kazakhstan

Home / Laws / Article 6. Issue and circulation of digital financial assets of the Law on Digital Assets in the Republic of Kazakhstan

1. The issue of digital financial assets is carried out by the issuer of digital financial assets on the digital platform of the operator of the digital financial assets platform based on the decision of the specified issuer on the release of these digital financial assets.

The procedure and conditions for the issuance of digital financial assets, their placement, turnover (circulation) and repayment, requirements for issuers of digital financial assets and for the decision to issue digital financial assets, requirements for investors of digital financial assets, including the procedure and conditions for recognizing individuals as qualified investors in order to carry out transactions with digital financial assets, as well as the list of digital financial assets allowed to be acquired only at the expense of qualified investors, the following are established:

The National Bank of the Republic of Kazakhstan with respect to digital financial assets provided for in subparagraph 1) of Article 5 of this Law;

a regulatory legal act of the authorized body for regulation, control and supervision of the financial market and financial organizations in relation to digital financial assets provided for in paragraphs 2) and 3) of Article 5 of this Law.

2. The registration of the issue of digital financial assets is carried out by the operator of the digital financial assets platform and includes a review of the documents submitted by the issuer for compliance with the legislation of the Republic of Kazakhstan.

3. The operator of the digital financial assets platform performs:

1) providing the issuer of digital financial assets with access to its digital financial asset platform, provided that the issuer of digital financial assets complies with the requirements of the legislation of the Republic of Kazakhstan when issuing digital financial assets;

2) issuance of digital financial assets by placing an entry on the digital platform of the operator of the digital financial assets platform.

In cases where the conditions for issuing a digital financial asset provide for the availability of an underlying asset, the release of a digital financial asset is carried out only after the operator of the digital financial asset platform has verified the availability of such an underlying asset.

4. The accounting and storage of the underlying asset of a digital financial asset is carried out by the organization for the storage of the underlying asset of a digital financial asset.

The requirements for organizations that have the right to act as an organization for storing the underlying asset of a digital financial asset in relation to digital financial assets provided for in subparagraph 1) of Article 5 of this Law are established by the National Bank of the Republic of Kazakhstan.

The list (types) of property that can act as the base asset of digital financial assets provided for in subparagraph 2) of Article 5 of this Law, the procedure for accounting and storing the base asset for such digital financial assets, and the requirements for organizations that have the right to act as an organization for storing the base asset of a digital financial asset in respect of digital financial assets provided for by subparagraph 2) of Article 5 of this Law, are established by a regulatory legal act of the authorized regulatory body, control and supervision of the financial market and financial organizations.

The procedure for reporting by organizations for storing the underlying asset of a digital financial asset to the National Bank of the Republic of Kazakhstan, including the forms, frequency and timing of its submission, is determined jointly by the National Bank of the Republic of Kazakhstan and the authorized body for regulation, control and supervision of the financial market and financial organizations.

5. The turnover of digital financial assets, including the exchange of digital financial assets of one type for digital financial assets of another type, is carried out on the digital platform of the operator of the digital financial assets platform and (or) the operator of the digital assets trading platform.

The operator of the digital financial assets platform can act as the operator of the digital assets trading platform if there is a corresponding account registration with the National Bank of the Republic of Kazakhstan.

The operator of the digital assets trading platform organizes trades with digital assets in accordance with the procedure provided for by the regulatory legal act of the National Bank of the Republic of Kazakhstan.

6. The Central Securities Depository maintains a system of registers of holders of digital financial assets provided for in subparagraphs 2) and 3) of Article 5 of this Law, in accordance with the procedure established by the Law of the Republic of Kazakhstan "On the Securities Market".

The procedure for submitting information to the central securities depository by operators of the digital financial assets platform, operators of the digital assets trading platform, as well as other issues of interaction between operators of the digital financial assets platform, operators of the digital assets trading platform and the central securities depository are determined by a joint act of the National Bank of the Republic of Kazakhstan and the authorized body for regulation, control and supervision of the financial market and financial organizations.

7. The operator of the digital financial assets platform and the operator of the digital assets trading platform operate on the basis of registration with the National Bank of the Republic of Kazakhstan.

The registration of the operator of the digital financial assets platform and the operator of the digital assets trading platform with the National Bank of the Republic of Kazakhstan is carried out for the purpose of regulating, controlling and supervising their activities and is a prerequisite for the provision of relevant services by the operator of the digital financial assets platform and the operator of the digital assets trading platform.

Activities related to the provision of services by the operator of the digital financial assets platform, the operator of the digital assets trading platform, carried out without registration with the National Bank of the Republic of Kazakhstan, are not allowed.

8. In order to register, an applicant intending to operate as an operator of a digital financial assets platform and/or an operator of a digital assets trading platform must meet the qualification requirements established by the National Bank of the Republic of Kazakhstan.

9. The procedure for registration of the operator of the digital financial assets platform, the operator of the digital assets trading platform, qualification requirements, conditions and procedure for combining the types of professional activities of the operator of the digital financial assets platform and the operator of the digital assets trading platform are approved by the National Bank of the Republic of Kazakhstan.

10. The regulatory legal act of the National Bank of the Republic of Kazakhstan, specified in paragraph 9 of this Article, includes:

1) the list of documents submitted by the applicant to the National Bank of the Republic of Kazakhstan for registration;

2) requirements for the applicant's organizational and legal form;

3) requirements for the minimum size of the authorized capital of the applicant;

4) the procedure for certifying and monitoring by the operator of the digital financial assets platform the availability and condition (safety) of the underlying asset of digital financial assets;

5) requirements for the internal rules of the operator of the digital financial assets platform, the operator of the digital assets trading platform;

6) information security requirements applicable to digital platforms of the operator of the digital financial assets platform, the operator of the digital assets trading platform;

7) the procedure for reorganizing the operator of the digital financial assets platform, the operator of the digital assets trading platform.

11. The founders and participants (shareholders) of the operator of the digital financial assets platform, the operator of the digital assets trading platform may be individuals and legal entities – residents and non-residents of the Republic of Kazakhstan, with the exception of persons:

1) specified in paragraph 12 of this Article;

2) not having an impeccable business reputation.

12. Legal entities and (or) foreign organizations that do not have the status of a legal entity, registered in a foreign state (territory) included in the list of states (territories) compiled by the authorized financial monitoring body that do not comply and (or) insufficiently comply with the recommendations of the Financial Action Task Force on Money Laundering (FATF), as well as those registered in offshore zones, the list of which is established by the National Bank of the Republic of Kazakhstan, cannot directly or indirectly own and (or) use, and (or) dispose of:

voting shares or participation shares in the authorized capital of the operator of the digital financial assets platform, the operator of the digital assets trading platform;

derivative securities issued in accordance with the legislation of the Republic of Kazakhstan or a foreign state, the underlying asset of which is the voting shares of the operator of the digital financial assets platform, the operator of the digital assets trading platform.

The prohibition established by part one of this paragraph also applies to persons on the list of organizations and persons associated with the financing of terrorism and extremism, as well as the list of organizations and persons associated with the financing of the proliferation of weapons of mass destruction, in accordance with the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime, financing of terrorism and financing the proliferation of weapons of mass destruction.

For the purposes of this paragraph, indirect ownership and (or) use and (or) disposal of voting shares, derivative securities and (or) shares in the authorized capital of the operator of the digital financial assets platform, the operator of the digital assets trading platform means the ability to determine the decisions of a participant (shareholder) of the operator of the digital financial assets platform, the operator of the trading platform digital asset platforms through ownership of voting shares, equity stakes, shares or other forms of equity participation in other legal entities and (or) foreign organizations that do not have the status of a legal entity.

13. Individuals registered in a foreign state (territory) included in the list of states (territories) compiled by the authorized financial monitoring body that do not comply and/or insufficiently comply with the recommendations of the Financial Action Task Force on Money Laundering (FATF), as well as those registered in offshore zones, the list of which established by the National Bank of the Republic of Kazakhstan, they may not be senior employees of the operator of the digital financial assets platform, the operator of the digital assets trading platform.

It is prohibited to elect or appoint a person to the position of a senior employee of the operator of the digital financial assets platform, the operator of the digital assets trading platform:

1) who was the head, member of the management body, head, member of the executive body, chief accountant of a financial organization, including a non–resident financial organization of the Republic of Kazakhstan, for a period of no more than one year prior to being accepted by the authorized body for regulation, control and supervision of the financial market and financial organizations or the financial supervisory authority of the state, a resident which is a financial institution – a non–resident of the Republic of Kazakhstan, a decision to apply a settlement regime to the bank, a decision to revoke the license of a financial organization, including a non-resident financial organization of the Republic of Kazakhstan, which led to its liquidation and (or) termination of activities in the financial market, or the entry into force of a judicial act on the compulsory liquidation of a financial organization, including a financial organizations – a non–resident of the Republic of Kazakhstan, or declaring it insolvent (bankrupt) in accordance with the procedure established by the legislation of the Republic of Kazakhstan or the legislation of the state in which the non-resident financial institution of the Republic of Kazakhstan is a resident.

The prohibition provided for in part one of this subparagraph shall apply for ten years after the relevant decision is made by the authorized body for regulation, control and supervision of the financial market and financial organizations or the financial supervisory authority of the state in which the non–resident financial organization of the Republic of Kazakhstan is a resident, or the entry into force of the relevant judicial act;

2) does not have an impeccable business reputation.

For the purposes of this paragraph, the senior employees of the operator of the digital financial assets platform, the operator of the digital assets trading platform are recognized as:

1) the head of the management body, his deputy and members of the management body;

2) the head of the executive body, his deputy and members of the executive body;

3) Chief accountant.

14. The authorized capital of the operator of the digital financial assets platform, the operator of the digital assets trading platform is formed exclusively by money in the national currency of the Republic of Kazakhstan.

The authorized capital of the operator of the digital financial assets platform, the operator of the digital assets trading platform, is formed prior to the application of the applicant intending to operate as the operator of the digital financial assets platform, the operator of the digital assets trading platform, to the National Bank of the Republic of Kazakhstan for registration.

15. To complete the registration process, the applicant intending to carry out the activities of the operator of the digital financial assets platform and (or) the operator of the digital assets trading platform submits the following documents and information to the National Bank of the Republic of Kazakhstan:

1) an application in the form established by the National Bank of the Republic of Kazakhstan, including information about the head (members) of the executive body (accompanied by copies of the diploma(s) and a document confirming the employee's employment in accordance with the Labor Code of the Republic of Kazakhstan);

2) a document confirming the payment of the authorized capital, the minimum amount of which is established by the National Bank of the Republic of Kazakhstan;

3) the charter, except in cases when the applicant carries out activities under the standard charter;

4) a document defining the procedure for interaction of the operator of the digital financial assets platform with the operator of the digital assets trading platform, the bank and (or) the National Postal Operator;

5) internal rules for the implementation of the activities of the operator of the digital financial assets platform, the operator of the digital assets trading platform, approved by the applicant's management body;

6) a document confirming the authority of the person to submit the application and the documents and information attached to it.

16. The application for registration as an operator of the digital financial assets platform, operator of the digital assets trading platform is considered by the National Bank of the Republic of Kazakhstan within twenty working days from the date of submission of the full package of documents required for registration.

The National Bank of the Republic of Kazakhstan has the right to suspend the deadline for consideration of an application for registration as an operator of a digital financial assets platform or an operator of a digital assets trading platform in any of the following cases:

identification of false data (information) about the applicant and (or) its founders, participants (shareholders) contained in the submitted documents and (or) information;

non-compliance of the content of the submitted documents and (or) information with the requirements of the legislation of the Republic of Kazakhstan;

the need to verify the accuracy of the data in the submitted documents and information;

The deadline for the applicant to eliminate the comments of the National Bank of the Republic of Kazakhstan to the submitted documents and (or) information is no more than ten working days.

The deadline for consideration of an application for registration as an operator of a digital financial assets platform or an operator of a digital assets trading platform is resumed after the applicant eliminates the comments of the National Bank of the Republic of Kazakhstan on the submitted documents and (or) information and the National Bank of the Republic of Kazakhstan completes verification of the accuracy of the data in the specified documents and (or) information, or if the applicant fails to provide updated information. (corrected) documents and (or) information during the term, provided for in part three of this paragraph.

17. The National Bank of the Republic of Kazakhstan assigns to the registered applicant the registration number of the operator of the digital financial assets platform, the operator of the digital assets trading platform, makes an entry in the register of operators of the digital financial assets platform, the register of operators of the digital assets trading platform, and sends the applicant a written notification indicating the registration number on account registration on time, established by paragraph 16 of this article.

The register of digital financial asset platform operators and the register of digital asset trading platform operators that have been registered are posted on the Internet resource of the National Bank of the Republic of Kazakhstan.

In case of refusal of registration, the National Bank of the Republic of Kazakhstan shall send to the applicant in writing a notification of refusal of registration indicating the reason for the refusal within the time period established by paragraph 16 of this Article.

18. The account registration of the operator of the digital financial assets platform or the operator of the digital assets trading platform is refused on any of the following grounds:

1) unreliability and (or) incompleteness of information and (or) information in the documents submitted for registration;

2) submission of an incomplete package of documents or non-compliance of documents with the requirements of this Law and the regulatory legal act of the National Bank of the Republic of Kazakhstan;

3) non-compliance of the founder, participant (shareholder) of the operator of the digital financial assets platform, the operator of the digital assets trading platform with the requirements established by paragraphs 11 and 12 of this Article;

4) non-compliance of senior staff with the requirements established by paragraph 13 of this Article;

5) non-compliance with the requirements established by paragraph 14 of this Article;

6) the existence of an outstanding or outstanding criminal record of the beneficial owner.

19. In case of refusal of registration, the applicant intending to carry out the activities of the operator of the digital financial assets platform and (or) the operator of the digital assets trading platform has the right to resubmit the application for registration upon elimination of the reasons that led to the refusal of registration, or decide to change its name or reorganize or liquidate.

Failure to eliminate the reasons that led to the refusal of registration of the operator of the digital financial assets platform, the operator of the digital assets trading platform, is the basis for refusing to re-examine the said application.

The re-submitted application is reviewed by the National Bank of the Republic of Kazakhstan within ten working days.

20. The procedure for reporting, including the forms, frequency and timing of its submission, by operators of the digital financial assets platform, operators of the digital assets trading platform to the National Bank of the Republic of Kazakhstan is determined by the National Bank of the Republic of Kazakhstan.

21. The operator of the digital financial assets platform and the operator of the digital assets trading platform ensure compliance with international standards on countering money laundering, terrorist financing and financing the proliferation of weapons of mass destruction and the legislation of the Republic of Kazakhstan on countering the legalization (laundering) of proceeds from crime, financing terrorism and financing the proliferation of weapons of mass destruction.

The operator of the digital financial assets platform and the operator of the digital assets trading platform form a risk management and internal control system.

The procedure for forming a risk management and internal control system for the operator of the digital financial assets platform and the operator of the digital assets trading platform is determined by the National Bank of the Republic of Kazakhstan.

22. It is allowed for financial organizations and residents of the Republic of Kazakhstan to issue digital financial assets on the territory of the Astana International Financial Center in accordance with the requirements established by a joint act of the authorized body for regulation, control and supervision of the financial market and financial organizations and the National Bank of the Republic of Kazakhstan.

23. It is allowed to issue digital financial assets by participants of the Astana International Financial Center on the digital platform of the operator of the digital financial assets platform in accordance with the requirements established by the joint act of the authorized body for regulation, control and supervision of the financial market and financial organizations and the National Bank of the Republic of Kazakhstan.

24. The requirements of this article, with the exception of paragraph 7 of this article, apply to the stock exchange and the central securities depository when they operate as the operator of the digital financial assets platform and (or) the operator of the digital assets trading platform in the part not regulated by the Law of the Republic of Kazakhstan "On the Securities Market".

The Stock exchange and the central securities depository have the right to operate as an operator of the digital financial assets platform and (or) an operator of the digital assets trading platform without registration with the National Bank of the Republic of Kazakhstan in accordance with the qualification requirements established by the National Bank of the Republic of Kazakhstan for this activity.

25. Legal entities of the Republic of Kazakhstan have the right to issue digital financial assets on the territory of the Astana International Financial Center in accordance with the procedure and on the terms defined by a joint act of the National Bank of the Republic of Kazakhstan, the authorized body for regulation, control and supervision of the financial market and financial organizations and the Committee of the Astana International Financial Center for Regulation of Financial Services.

Participants of the Astana International Financial Center have the right to issue digital financial assets on the digital platform of the operator of the digital financial assets platform in accordance with the procedure and on the terms defined by a joint act of the National Bank of the Republic of Kazakhstan, the authorized body for regulation, control and supervision of the financial market and financial organizations.

26. When making transfers of digital financial assets, the operator of the digital financial assets platform and the operator of the digital assets trading platform collect and store information about the sender and recipient of digital financial assets, including information that identifies these persons and (or) beneficial owners, in accordance with the procedure provided for by the regulatory legal act of the National Bank of the Republic of Kazakhstan.

27. In case of absence or incomplete provision of the information specified in paragraph 26 of this article, the operator of the digital financial assets platform, the operator of the digital assets trading platform must suspend the operation for at least forty-eight hours before the required information is provided by the client.

If the client fails to provide the information necessary to identify the sender and/or recipient, the operator of the digital financial assets platform or the operator of the digital assets trading platform will refuse to conduct the transaction after the deadline has expired.

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