#LEGALALERT

The law has been amended: now contracts can be signed using SMS, fingerprints or biometrics

The legislation of the Republic of Kazakhstan has been amended to explicitly provide for the possibility of using a simple electronic signature to sign contracts. The new law, which comes into force 60 days after its first official publication, provides an opportunity for entrepreneurs to use electronic signatures, including confirmation via SMS, when interacting with foreign persons and legal entities with foreign participation.

The essence of the changes: A simple electronic signature in the new law is defined as an electronic digital confirmation of identity using codes, passwords or other means of identification.

Usage examples include:

- Codes: One-time passwords (OTP) sent to a mobile phone.

- Passwords: Passwords used in personal accounts on various platforms.

- Other means of identification: Biometric data (for example, fingerprint or face recognition), SMS messages with a confirmation code.

It is allowed to use a simple electronic signature by private business entities in transactions with foreign individuals and legal entities. Transactions certified by a simple electronic signature of an authorized person are recognized as equivalent to those signed on paper, with the exception of transactions requiring notarization or mandatory state registration.

Conditions for recognizing the authenticity and validity of transactions:

- A written agreement between the parties on the use of a simple electronic signature is required.

- The parties must acknowledge in writing the authenticity and validity of transactions concluded using a simple electronic signature.

The procedure for putting into effect: The law comes into force 60 calendar days after its first official publication, with the exception of certain paragraphs that will enter into force in six months.

These changes are aimed at simplifying and speeding up the process of concluding contracts, especially in international relations, which contributes to business development and improvement of the business climate in Kazakhstan. Examples of using a simple electronic signature, such as confirmation via SMS, OTP, or biometric data, make the process of signing contracts more convenient and accessible to all market participants.

SOLIS Law Firm

Shyngys Oralbayev

https://t.me/ChingisOralbayev

Applicable links:

1. The Law of the Republic of Kazakhstan "On Amendments and Additions to Certain Legislative Acts of the Republic of Kazakhstan on Communications, Digitalization, Improvement of the Investment Climate and Elimination of excessive Legislative regulation" No. 86-VIII of the SAM dated 05/21/2024 (https://online .zakon.kz/Document/?doc_id=33901519&pos=453;-43#pos=453;-43;)