A Cryptocurrency Offshore Hedge Fund License is an emerging field with several blockbuster funds being opened in recent days. More than USD 1 Billion in assets is under management in cryptocurrency offshore hedge funds with more investors being attracted to the rapidly developing sector. These funds invest/trade in liquid, public cryptocurrencies and/or invest in early-stage cryptocurrency projects through Simple Agreement for Future Tokens (SAFTs) and other instruments. With more established investors showing interest in cryptocurrency investments, the scope of investments and funds flowing into this sector is expected to grow further.

While as a Cryptocurrency Offshore Hedge Fund you may be involved primarily in cryptocurrency investments, a Kazakhstan Cryptocurrency Offshore Hedge Fund License also enables businesses to diversify into other activities including e-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 Cryptocurrency Offshore Hedge Fund 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.

How can I get a Kazakhstan Cryptocurrency Offshore Hedge Fund License?

There is a four-stage process for obtaining a Kazakhstan Cryptocurrency Offshore Hedge Fund 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 of the Republic of Kazakhstan for Regulation and Development of the Financial Market (‘Agency’) is also commenced. The process of registration is usually 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 Cryptocurrency Offshore Hedge Fund License Requirements?

The documentation requirements for a Kazakhstan Cryptocurrency Offshore Hedge Fund License are minimal. The only key documents are a Notarized copy of the passport with apostille and 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 the filing of annual returns and contact details of an English-speaking accountant will be provided.

Kazakhstan Cryptocurrency Offshore Hedge Fund 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 Cryptocurrency Offshore Hedge Fund 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 Cryptocurrency Offshore Hedge Fund License.