Kazakhstan Payment Services Provider License

Published:
June 5, 2023
sun district blue business tower

Establishing a solid foundation for your company goes beyond innovative technology and cutting-edge solutions. One crucial aspect that often presents challenges is setting up bank accounts for cryptocurrency exchanges. Unlike traditional e-commerce businesses, crypto businesses face unique hurdles when it comes to banking, compliance, and legal requirements. In this article, we will explore the complexities involved and proper, faster ways of obtaining Kazakhstan Payment Services Provider License.

Digital Currency Challenges

Digital currency exchanges require bank accounts for various reasons, including facilitating the deposit and withdrawal of fiat currencies, enabling smooth transactions with customers, and ensuring compliance with regulatory requirements. However, due to the relatively nascent and rapidly evolving nature of the crypto industry, a lot of traditional money establishments have been slow to adapt and provide banking services to crypto businesses.

Banking Reluctance: Crypto Risk

One of the primary reasons for the reluctance of traditional banks is the perceived high risk associated with digital currencies. Factors such as the volatility of digital assets, concerns over money laundering and terrorist financing, and regulatory uncertainties have made banks cautious about extending their services to crypto businesses. Consequently, many crypto companies have faced difficulties in finding banking partners who are willing to provide them with an important financial base.

Alternative solution

To address these challenges, alternative solutions were intended in recent years. One such solution is the establishment of Payment Services Providers (PSPs) specifically tailored to the needs of the crypto industry. PSPs act as intermediaries between customers and businesses, facilitating the transmission of payments electronically. They enable credit card bill sendings, fund transfers, payment of utility bills, and purchasing goods and services from online merchants.

Kazakhstan: Crypto-friendly Licensing

In jurisdictions like Kazakhstan, getting a PSP license can be a viable option for crypto businesses seeking banking services. A PSP license allows businesses to promote a wide range of services, including digital currency payments, foreign exchange, securities dealing, financial consulting, depository agent activities, and merchant services, all under a single license. The licensing process is relatively flexible, with minimal documentation requirements. There is no need for a physical office, staff, business references, or a compliance officer. Additionally, there is no minimum paid-up capital requirement, and 100% foreign ownership is possible. By structuring their operations appropriately, businesses can also benefit from reduced tax rates, potentially reaching close to 0%.

PSP Obtaining Time Frames

Obtaining a Kazakhstan PSP license involves applying to the Kazakhstan National Bank and the Ministry of Economy of Kazakhstan. The application fee varies depending on the case, but it is generally considered to be cost-effective compared to other jurisdictions. Once a fully completed application is submitted, the license is typically granted within 6-8 weeks.

Conclusion

In conclusion, navigating the complexities of obtaining bank accounts for digital currencies exchanges requires careful consideration of the available options and a thorough understanding of the regulatory landscape. While traditional banks have been slow to adapt, alternative solutions like PSP licenses in crypto-friendly jurisdictions can provide the necessary banking infrastructure for crypto businesses. By exploring these options and staying abreast of evolving regulations, crypto companies can establish the financial foundation needed to thrive in the rapidly growing cryptocurrency ecosystem.

Related insights

PSP license in Germany

Germany, as the largest and most stable economy in the Euro Zone, presents lucrative opportunities for businesses seeking to establish a presence in the country. This comprehensive guide outlines the process of obtaining a PSP license in Germany and emphasizes the advantages of operating a payment service provider license in Germany within this business-friendly and…

Read more 11.09.2023

VASP license in Guernsey

In the ever-evolving realm of the digital economy, VASPs have emerged as pivotal players in the world of virtual assets. Key to legitimacy of their turnover is the acquisition of a VASP license—a regulatory prerequisite that establishes a structured framework for offering virtual asset options. Guernsey, a prominent international monetary hub, has positioned itself as…

Read more 11.09.2023

How to make a St.Kitts and Nevis Trust in 2023

In the ever-evolving landscape of off-shore economic planning, inducting a St. Kitts and Nevis Trust in 2023 presents you a unique opportunity to safeguard your assets and diversify your holdings. By drawing from a plethora of reputable sources and the latest insights, this guide will navigate you through the intricate process of crafting a trust…

Read more 07.09.2023

Crypto regulation in Namibia 2023

In the heart of southern Africa, Namibia is embarking on a transformative journey through the intricate landscape of cryptocurrency regulation in the year 2023. As digital currencies and blockchain technology continue to redefine the global financial paradigm, nations across the world are grappling with the dual challenge of embracing innovation while safeguarding the integrity of…

Read more 07.09.2023

Cryptolicense in Australia

The use of digital-currency are topic to oversight to assure buyer conservation, monetary stability, and prevention of illicit actions. This article explores the current state of cryptos controller and licensing in country. Structure of Ordinance Country has taken a proactive antidote towards crypto-regulation, aiming to strike a balance between facilitating novation and safeguarding the interests…

Read more 06.09.2023

Crowfunding program in South Africa

In recent years, crowfunding has emerged as a powerful tool for individuals, and district initiatives to access funding and turn their innovative ideas into reality. South Africa, with its dynamic and diverse economy, has witnessed the development of crowfunding programs that furnish a unique avenue for raising capital and promoting socio-economic development. This article delves…

Read more 30.08.2023

Crypto regulation in Cayman Islands

The region’s leadership is improving the legislative framework, which will help attract crypto-assets and other instruments from companies in this field. Today, the Caymans are considered one of the main points on the globe where not only investment funds, but also the fintech industry is actively developing. For companies from this sphere, it is a…

Read more 30.08.2023

Offshore VASP license

In the dynamic landscape of the digital economy, Virtual Asset Service Providers (VASPs) have emerged as crucial intermediaries facilitating the seamless exchange of virtual acquisitions, such as cryptocurrencies. The regulatory framework surrounding VASPs has evolved rapidly to ensure economic security, combat illicit activities, and foster innovation. One avenue that has gained prominence is obtaining a…

Read more 30.08.2023

Create a trust in Luxembourg

In the intricate landscape of global finance, the small European nation of Luxembourg has emerged as a beacon of stability and sophistication. With a well-established reputation for economic services, governance offers an ideal surroundings for individuals and families seeking to rescue, manage, and optimize their wealth through the association of beliefs. This article delves into…

Read more 30.08.2023

Creation of a Trust in the Cayman Islands

Before setting up a trust, the co-founders of such corps conduct a thorough regional analysis and select the most attractive parts to work in. For most, it is more usual to choose regions with which they have previously dealt or know the specifics of local regulators. Others are guided by feedback from partners and choose…

Read more 30.08.2023

Gaming license in Comoros 2023

The gaming-assiduousness is actively developing and every year there are more and more legal entities that would like to work in this niche. Therefore, more and more online-casinos and betting-services appear. When corporation representatives consider the prospect of starting to work in this market, they need to decide on the place of registration of the…

Read more 30.08.2023

Gambling license in Antigua and Barbuda

This picturesque twin-island state located in the Caribbean has emerged as a key player in the multinational online gaming industriousness. This is largely due to its robust adjustment framework and the availability of gaming permissions that attract operators from around the world.  The Evolution of Online Gaming in Isles: State recognized the potential of the…

Read more 23.08.2023