Payward Secures Initial Approval for Kraken Kazakhstan Expansion

The in-principle approval is a step towards licensing digital asset trading, dealing and custody in the AIFC, though Payward has not given a timeline.

Payward, the parent company of cryptocurrency exchange Kraken, has received in-principle approval in Kazakhstan.

The Astana Financial Services Authority (AFSA) granted the approval to its local unit, Payward Kazakhstan.

As a result, the unit has moved closer to securing a licence in the Astana International Financial Centre (AIFC).

However, an in-principle approval is not a full licence. The company has not disclosed when it expects to receive the licence or begin operations.

Once licensed, Payward Kazakhstan plans to operate a digital asset trading facility and offer custody of digital assets.

In addition, it would deal in investments, both for its own account and on behalf of clients.

Traders in Kazakhstan would then gain access to Payward's global orderbooks. These orderbooks cover markets in Europe, the US and Asia.

"The AFSA and AIFC teams have been constructive and rigorous throughout this process, and we appreciate the engagement. We're looking forward to serving clients in Kazakhstan, and to broadening what we offer them over time,"

said Dave Ripley, Co-CEO of Payward and Kraken.

According to Payward, the move is part of a wider strategy to build regulated, local operations in major financial centres.

The company also aims to link these new markets to its core trading network.