A Bitcoin Over the Counter Exchange License permits the holder to act as a broker for the trade of Bitcoins and other cryptocurrencies on the over the counter (OTC) market. The OTC market is the largest market for cryptocurrency trades with a size much bigger than the cryptocurrency exchanges. The trades on the OTC market also have a larger ticket size. It is the preferred market for trading by the Bitcoin ‘whales’ who prefer the personalized service and ease of OTC markets. A Bitcoin Over the Counter Exchange License from Kazakhstan will enable you to enter this lucrative market and deal in high value and large-sized cryptocurrency transactions.
A Bitcoin Over the Counter Exchange License is obtained in Kazakhstan after registering as a Domestic TOO (Ltd. Company) which then obtains subsequent permission as a Financial Service Provider from the Agency of the Republic of Kazakhstan for Regulation and Development of the Financial Market (‘Agency’) and Ministry of Economy. The license allows the business to accept customers from other jurisdictions.
While as a Bitcoin Over the Counter Exchange you may be involved primarily in crypto transactions, a Kazakhstan Bitcoin Over the Counter Exchange License also enables businesses to perform a wide variety of activities including-wallet services, payment services, foreign exchange, and securities dealing, financial consulting, depository agent activities, merchant services, issuance of debit cards (in specific cases), hosting of currency and crypto trading platforms and software development. It must be highlighted here that a Kazakhstan Bitcoin Over the Counter Exchange License is unique because it is a single license that permits such a wide range of activities.
The basis of the license is not a statue but a permissive regime based on express written permission provided by the regulatory authority. While the registration of a financial services company is made with the Ministry of Economy, the Agency is entrusted with functions such as regulation of the financial services, money exchange services, investment funds and insurance companies under the Decree of the President of the Republic of Kazakhstan dated November 11, 2019 No. 203 “On further improvement of the public administration system of the Republic of Kazakhstan”. The permission of the Agency is sought along with the registration of the Ministry of Economy for operating in the financial services sector as a financial services company.
Other Key Benefits
There are several other Key Benefits in obtaining a Bitcoin Over the Counter Exchange License in Kazakhstan:
There is a possibility of 100% foreign ownership
The Tax rate can be reduced to close to 0% through permitted structuring
A possibility to appoint nominees for more privacy
Availability of an IBAN Account and SWIFT Identifier for your financial entity
Easy accessibility of a payment services provider
How can I get a Kazakhstan Bitcoin Over the Counter Exchange License?
There is a four-stage process for obtaining a Kazakhstan Bitcoin Over the Counter Exchange License.
Stage 1: It involves the collection of documents mentioned below and the preparation of a POA.
Stage 2: Incorporation of a local company that is entered into the Commercial Register which takes around a week. Once the company is incorporated, a Business Identification Number (BIN) is received. In parallel, permission is obtained as a Financial Service Provider from the Ministry of Economy.
Stage 3: After the company is registered and permission is obtained from the Minister of Economy, a bank account is opened for the company and the application process with the Agency is also commenced. The process of registration is normally completed within 4 weeks.
Stage 4: The documents and bank account credentials, debit cards, digipass, and token generators are shipped via courier. An English translation of all documents is also provided.
Kazakhstan Bitcoin Over the Counter Exchange License Requirements?
The documentation requirements for a Kazakhstan Bitcoin Over the Counter Exchange License are minimal. The only key documents are a Notarized copy of the passport with apostille and a notarized POA (provided by us) with the apostille. The appointment of nominees is possible if sought by the applicant. There are no requirements for office, staff, business references, or a compliance officer. Only a minimum of 1 (one) director is required. There is also no minimum paid-up capital requirement. Assistance will be provided for filing of annual returns and contact with an English-speaking accountant will be provided.
Kazakhstan Bitcoin Over the Counter Exchange License Costs and Time
The fee for the application for a license varies on a case-to-case basis but is considered to be among the most cost-effective in the world. A license is also generally granted within 6-8 weeks of submission of a fully completed application. It includes the time for obtaining permission from the Ministry of Economy and the Agency.
NOTE: This license is an Accreditation to operate as a Financial Service provider, not a license offered by Kazakhstan. If a client wishes to verify his accreditation he needs to fly to Kazakhstan and arrange a personal appointment with the regulator. Accreditation issued cannot be published for counter verification purposes online, since only licensees who got their license based on the regulatory regime, will enjoy this so as anywhere else. Our lawyers will assist for translation purposes and join the client to the regulator if desired in the branch of the Agency where the accreditation was issued.
Empire Global has a team of experienced professionals who will assist you through the entire process of the Kazakhstan Bitcoin Over the Counter Exchange License application including assistance in the preparation of documents, submission of application, and responding to any queries from the Agency and Ministry of Economy. We request you to get in touch with Empire Global at the earliest to understand the entire process in detail and apply for a Kazakhstan Bitcoin Over the Counter Exchange License.