Kraken wins AFSA in-principle approval for Kazakhstan

Kraken’s parent company, Payward, says Kazakhstan’s financial regulator has approved in principle its application to license Payward Kazakhstan for digital asset trading, investment dealing and custody in the Astana International Financial Centre (AIFC). The approval advances Kraken’s planned local operation, but it is not the final licence to provide those services.

In its October 22 announcement, Payward said the Astana Financial Services Authority (AFSA) had granted the in-principle approval. The proposed permissions cover operating a digital asset trading facility, dealing in investments as principal and as agent, and providing custody of digital assets. The announcement does not give a timetable for completing the licensing process or disclose any conditions specific to Payward Kazakhstan.

Which services does the approval cover?

The three activity types describe distinct functions. Operating a digital asset trading facility covers running a venue where digital asset transactions can be executed. Dealing as principal means a firm trades on its own account; dealing as agent means it acts for a client. Providing custody covers holding digital assets for clients. Payward’s announcement names these permissions but does not specify which assets, trading pairs, or custody arrangements the proposed Kazakhstan operation would support.

Payward also says Kazakh traders will gain access to its global order books, which it describes as having deep liquidity and execution across markets in Europe, the United States and Asia. That is the company’s description of its planned service. The announcement does not say when access will begin or detail how orders would be routed between the local operation and those order books.

Does in-principle approval let Kraken start operating?

No. AFSA’s authorisation guidance says an in-principle letter allows an applicant to complete the registration process; AFSA issues the licence after the firm demonstrates that it has registered with the AIFC Registrar of Companies, is sufficiently capitalised and has met other outstanding matters. The guidance describes the general authorisation process, and neither it nor Payward’s announcement identifies the remaining steps or requirements for this application.

That distinction matters because the approval concerns the AIFC regulatory framework, not a blanket authorisation to offer services throughout Kazakhstan. Payward says it is looking forward to serving clients in Kazakhstan, but the announcement does not say that the entity is already licensed, has begun operations, or can currently provide the listed services. The final licence and any approval to commence operations would determine when the proposed activities can start.

What does Payward say traders will get?

Payward co-CEO Dave Ripley said the company is looking forward to serving clients in Kazakhstan and broadening its offer over time. The firm frames the move as part of a wider strategy to establish regulated local operations and connect new markets to its trading network. Those are Payward’s stated plans; the announcement provides no launch date, customer figures, or revenue targets for Kazakhstan.

For now, the confirmed development is a regulatory step toward licensing Payward Kazakhstan for three specified categories of activity in the AIFC. It establishes the proposed scope of the local business, while leaving the final authorisation and start of service pending.

References

• October 22 announcement — payward.com
• authorisation guidance — afsa.aifc.kz