Payward, the parent entity of the cryptocurrency platform Kraken, has obtained preliminary regulatory clearance to establish operations in Kazakhstan. The Astana Financial Services Authority (AFSA) granted in-principle approval for a license covering Payward Kazakhstan within the Astana International Financial Centre (AIFC).
The development, announced on Thursday, enables the group to pursue regulated offerings that include cryptocurrency trading, investment products, and custody of digital assets for local participants.
This step allows Kazakh users to connect to Kraken’s international order books, providing access to substantial liquidity and dependable trade execution across a range of digital assets.
Individuals in the country stand to gain entry to the broader suite of trading and investment tools available through the platform once full licensing and operational readiness are complete.
In-principle approvals of this kind typically represent a conditional green light that permits the applicant to finalize compliance arrangements, systems, and controls before receiving authorization to onboard clients.
Kazakhstan presents a distinctive landscape for such expansion. The Central Asian nation previously ranked among the world’s leading centers for bitcoin mining, accounting for approximately 18 percent of global hashrate at its peak in 2021.
That surge followed China’s mining restrictions and was driven by relatively inexpensive electricity, largely from coal and other fossil sources.
Rapid growth, however, strained the power grid, prompted concerns over unregulated activity, and led authorities to impose tighter licensing, taxes, and operational limits.
Mining activity subsequently contracted significantly as operators relocated or scaled back, and the government shifted emphasis toward structured oversight rather than unchecked energy-intensive mining.In recent years, Kazakhstan has worked to cultivate a supervised cryptocurrency sector.
The AIFC operates under its own legal framework, with AFSA serving as the specialized regulator for financial services and digital assets inside the centre. Authorities have pursued licensing for legitimate platforms while taking enforcement action against unlicensed operators.
Parallel national measures under the National Bank have further formalized rules for digital asset service providers outside the AIFC.
Payward’s earlier engagement in the country included a memorandum of understanding with Prime Minister Olzhas Bektenov and participation by co-CEO Dave Ripley in panels at the AI & Digital Bridge 2026 event, signaling sustained interest in the market’s evolution.
The approval aligns with Payward’s broader pattern of securing local regulatory footholds to support on-the-ground services in key jurisdictions.
Similar processes have advanced in other markets, allowing the firm to offer compliant access to its global infrastructure rather than relying solely on offshore arrangements.
For Kazakhstan, the entry of a licensed platform with established international liquidity could support the transition from a mining-dominated past toward a more balanced, regulated digital asset ecosystem focused on trading, custody, and related investment activities.
Full implementation will depend on completing remaining regulatory requirements and operational preparations.
The in-principle status marks progress but does not yet authorize active client services. As Kazakhstan continues refining its dual national and AIFC frameworks, the development underscores the country’s effort to attract compliant market participants while maintaining control over digital asset activities.
