The National Bank of the Republic of Kazakhstan has launched a project aimed at the digitalization of financial assets (DFAs).
It involves the introduction of digital financial assets and the tokenization of traditional financial instruments, including tokens backed by money (stablecoins) and other financial instruments.
The project also provides for the tokenization of existing (traditional) financial instruments such as bonds, shares, and other securities, enabling their circulation in digital format.
Legislative Framework
As part of the DFA project, a draft Law of the Republic of Kazakhstan “On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on the Development of the Financial Market and the Protection of Consumer Rights of Financial Services” has been developed. The draft law provides for the inclusion of activities related to digital assets within the legal framework and enables regulation under a special regime — through the mechanism of a regulatory sandbox. It also establishes the authority of the National Bank of the Republic of Kazakhstan to introduce a special regulatory regime (regulatory sandbox) for projects related to digital assets.
Amendments are also being made to the Resolution of the Management Board of the National Bank of the Republic of Kazakhstan dated November 11, 2019, No. 178 “On Approval of the Rules for the Introduction and Termination of a Special Regulatory Regime by the National Bank of the Republic of Kazakhstan, the Conduct of Activities under the Special Regulatory Regime by Payment Organizations and/or Other Legal Entities Not Considered Financial Institutions, the Criteria for Selection by the National Bank of the Republic of Kazakhstan, and the Rules for Reviewing Documents to Conclude an Agreement for Activities under the Special Regulatory Regime.” The draft resolution formalizes the mandate of the National Bank of the Republic of Kazakhstan to introduce a special regulatory regime (regulatory sandbox) for activities related to digital assets.
Eligibility Criteria for Participation in the Regulatory Sandbox
To participate in the regulatory sandbox, applicants must meet certain criteria.
The key eligibility criteria include:
- Legal status of the applicant (second-tier bank; organization carrying out specific types of banking operations; resident payment organization; other resident legal entity of the Republic of Kazakhstan (non-financial organization));
- Legal integrity of the founder and the company (no criminal record, no active supervisory enforcement measures or sanctions);
- Relevance of the proposed activity under the special regulatory regime, including: 1. enhancing competition in the markets for payment services and digital assets; 2. developing these markets and aligning with consumer interests; 3. improving geographic accessibility of payment services and digital assets; 4. introducing new technologies and services (business processes) in these markets; 5. reducing costs and risks for consumers of payment services, digital assets, and market participants;
- Consistency of the business plan (the goals and content of the plan must align with the objectives of the special regulatory regime).
Documents and Information Submitted by the Applicant to the NBK for Participation in the Regulatory Sandbox
To participate in the regulatory sandbox, applicants must submit an application to the National Bank of the Republic of Kazakhstan (in accordance with the annex to Resolution No. 178) along with the following documents:
1. Founding documents – notarized copies (if originals are not provided);
2. Information about the founders, shareholders, and the chief executive, including the full name and legal address of the legal entity;
3. Business plan, including:
– justification for the need to conduct activities related to digital assets under the special regulatory regime;
– description of the activities and target audience related to digital assets and/or payment services within the special regulatory regime;
– the geographical area where payment services and/or digital asset-related activities will be provided;
– potential benefits and risks;
– risk management plan;
– scale of activities (volume, consumers);
4. Service provision timeline (specify the intended project implementation period);
5. Development stages and performance assessment:
– performance indicators and evaluation criteria;
6. Exit plan:
– procedure for service termination and settlement of contractual obligations with consumers;
7. Legal framework:
– reference to the applicability of the Laws of the Republic of Kazakhstan “On Payments and Payment Systems,” “On Digital Assets in the Republic of Kazakhstan,” and the relevant regulatory legal acts of the National Bank.
Process Map for Participation in the Regulatory Sandbox
A schematic showing the interaction between NBK and pilot project participants (attached separately).
Contact Information
+7 (7172) 775344 (вн. 3811)
e-mail: hq@nationalbank.kz
