Kraken wins Kazakhstan approval, but licence remains ahead

Kraken parent Payward has received in-principle approval from Kazakhstan’s Astana Financial Services Authority (AFSA) for a local unit to pursue digital-asset trading, investment dealing and custody in the Astana International Financial Centre (AIFC). The company announced the decision on October 22, saying the proposed operation, Payward Kazakhstan, would connect local traders to its global order books once licensed and operating.

According to Payward’s announcement, the proposed permissions cover operating a digital-asset trading facility, dealing in investments as principal and as agent, and holding digital assets in custody. That is a broader remit than an exchange-only trading operation: it includes both the platform for matching trades and the firm’s own dealing and safekeeping activities. Payward co-CEO Dave Ripley said the company aims to serve clients in Kazakhstan and broaden its offer over time.

What does AFSA’s in-principle approval allow?

It advances the application, but it does not authorize Payward Kazakhstan to start serving customers. AFSA’s authorisation guide describes in-principle approval as the fourth of six steps. The regulator sets conditions and recommendations at this stage; the applicant must fulfil them before AFSA issues a licence. The guide says that can include registering the legal entity, appointing a board and injecting initial capital.

Payward has not disclosed the conditions attached to its approval or given a timeline for completing them. Its announcement does not specify which products would launch first, what fees or funding methods would apply, or when customers could open accounts. The regulatory milestone therefore marks progress toward a local operation, while leaving the practical offer and launch date unresolved.

How would the Kazakhstan operation differ from a separate local market?

Payward says Kazakh traders will have access to its global order books, which it describes as serving major markets in Europe, the United States and Asia. That would link the planned local operation to the company’s wider trading network rather than create a standalone pool of orders, although the announcement gives no details on execution, fees or how local funding and withdrawals would work.

The proposed licence also spans several functions. A trading facility can bring buyers and sellers together; dealing as principal or agent covers different ways the firm may participate in investment transactions; custody covers safekeeping. Those permissions could support a more integrated service if granted, but the announcement does not establish that every function will be available at launch. Customers will need the final licence and product terms to assess the actual service.

What remains before customers can use Kraken in Kazakhstan?

Payward Kazakhstan must satisfy AFSA’s remaining conditions and receive the formal licence. The company’s stated plan to connect local traders to global order books is a prospective benefit, while the present trade-off is that the operating scope, timeline and customer arrangements are not yet settled publicly.

The next signals to watch are AFSA’s final licensing decision and Payward’s disclosure of the launch date, supported products, deposit and withdrawal options, fees and eligibility rules. Until then, the approval is a step in the authorisation process, not confirmation that trading or custody services are live in Kazakhstan.

Sources and documents

• Payward’s announcement — payward.com
• authorisation guide — afsa.aifc.kz