Payward, the parent company of cryptocurrency exchange Kraken, has received in-principle approval from the Astana Financial Services Authority (AFSA) to operate in Kazakhstan, the company announced Thursday. The preliminary approval allows Payward Kazakhstan to offer digital asset trading, investment services, and custody within the Astana International Financial Centre (AIFC), though it is not a final operating license.
Regulatory Milestone
The AFSA granted Payward Kazakhstan approval to operate a digital asset trading facility, deal in investments as principal and agent, and provide custody services. The company must still satisfy remaining regulatory requirements before commencing licensed activities. Once fully authorized, Kazakhstan-based clients would gain access to Kraken's global order books, connecting local trading activity with liquidity across Europe, the United States, and Asia.
"The AFSA and AIFC teams have been constructive and rigorous throughout this process, and we appreciate the engagement," said Dave Ripley, co-CEO of Payward and Kraken.
From Mining Boom to Regulated Hub
Kazakhstan became a major bitcoin mining destination after China's 2021 crackdown on the industry drove operators across the border. At its peak, the country captured approximately 18% of global bitcoin hashrate, aided by inexpensive electricity, abundant fossil fuels, and available industrial facilities. However, the mining growth strained the national electricity grid, prompting authorities to impose additional fees, licensing requirements, and tighter supervision.
According to hashrateindex.com's global heatmap, Kazakhstan now commands 1.6% of the network's compute. The government has since pursued a broader digital asset strategy through the AIFC, including regulated exchanges, custody businesses, and cryptocurrency infrastructure. Payward's prospective entry illustrates that transition: Kazakhstan initially attracted crypto companies with cheap electricity, but now international trading firms are seeking permission to operate under its financial regulations.
