The procedure for registering a crypto company in the AIFC – Technology

[ad_1]

Kazakhstan’s price of electricity, legislation, and location make the country a potential global leader in crypto mining. The government is actively involved in adapting existing laws to improve the possibilities of existence of various types of crypto companies in the country.

However, at the moment, Kazakhstan’s law prohibits the circulation of cryptocurrencies, but crypto mining is not prohibited by law. On June 25, 2020, the President of Kazakhstan signed the Law of the Republic of Kazakhstan “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Regulation of Digital Technologies”, which officially legalizes crypto mining in Kazakhstan . A charge for miners has been established in the amount of one tenge for 1 kWh of electricity consumption, it will come into force on January 1, 2022.

Recently, foreign crypto companies are actively registering their affiliates. One way is to create a legal entity within the Astana International Financial Center (hereinafter – the “AIFC”). The AIFC rules allow the registration of crypto companies and other regulated activities based on digital assets.

In addition, it has a special legal regime in the financial sector, with different types of tax incentives, depending on the financial services provided, and an independent judicial system to examine possible disputes between companies. In this article, we will go over the process of registering crypto companies in the AIFC.

There are 16 types of legal structure available, crypto companies can choose one of 10 types of legal structure. Let us take the example of the registration of a private company.

The registration procedure

To operate on AIFC territory, crypto mining companies (Private Company) need:

– main authorization / approval;

– register the legal person;

– obtain a license to provide financial services.

Step 1: Authorization / Primary Approval

The Astana Financial Services Authority (AFSA) issues three types of licenses: regulated activities, market activities and ancillary services. Licenses determine the type and scope of financial services that a business is permitted to provide. In our case, crypto mining companies fall under the Market Activities type.

The authorization process helps AFSA identify, prevent serious misconduct or serious harm, and ensure that businesses and individuals meet the prerequisites.

During this step, the applicant submits the application forms and supporting documents listed in the Checklist section of the application documentation. AFSA reviews the request and provides preliminary comments.

The purpose of this step is the prior approval of the possibility of obtaining a license by the applicant. To save time and remedies for all parties, AFSA reviews all applicant documents to verify their compliance with AIFC requirements before starting the authorization process. If there are any remarks or comments on the applicant’s documentation, AFSA gives time to eliminate the inconsistencies and resubmit the documents.

If the application is accepted, AFSA will inform the applicant of the status of the application and issue a master approval letter.

Step 2: Company registration

To apply for the registration of a crypto mining company with the legal structure of a private company, the applicant provides the following information:

– The request for legal name reservation – must be accompanied by the prescribed fees set out in the AIFC legal acts from time to time.

– Articles of Association – one of the constituting documents of a company, which defines the basic management, administrative structure and corporate governance of the company.

– Partnership Agreement – written agreement that records the issues agreed upon between the partners regarding the internal functioning of the partnership.

– Headquarters address – physical location to which all communications and notifications can be directed. The registered address must be located on the territory of the AIFC in the city of Nur-Sultan.

– Authorized signatory – a person authorized to act on behalf of the legal person in matters related to its operation. This authority may be granted by issuing a resolution or power of attorney, a copy of which must be submitted to the Companies Register with the application for registration of a legal person.

– Directors – the first directors of a Company must be elected by the Founders. A private company must have at least one director.

– Chief Executive Officer – a natural person with an Individual Identification Number, appointed by the Shareholders or Directors. The Chief Executive Officer is vested with the broadest powers to act in all circumstances on behalf of the Company.

– Company Secretary – an officer appointed by the directors of a company to ensure that the obligations of administration of the company under the legal acts of the AIFC are met.

– Beneficial owner – legal person – shareholder / partner are required to provide information on its beneficial owner who owns more than 25% of the shares / ownership.

– Resolution – the registration request must be accompanied by a copy of the resolution signed by each of the shareholders / partners of the proposed legal person.

– Fight against money laundering – complete the questionnaires relating to the section Fight against money laundering.

To register a legal person with AIFC, it has to pay a fee in the amount of 300 USD.

After verification of the submitted documents, the applicant receives a registration certificate.

Step 3: License

Issuing a license is the last step in setting up a crypto company within AIFC. Before applying for a license, the company must pay a fee in the amount of – 5,000 to 125,000 USD.

After reviewing all comments, making the appropriate changes and receiving the Certificate of Registration, Primary Approval, the applicant submits a full set of documents. On this basis, the final decision on the issuance of a license is taken. After obtaining a license, the applicant has the right to carry on his activity.

The content of this article is intended to provide a general guide on the subject. Specialist advice should be sought regarding your particular situation.

[ad_2]