The practice of concluding online contracts is expanding across the world. Companies, entrepreneurs, and individuals located in different time zones, countries, or continents sign agreements within minutes. This has transformed the nature of business interaction. Deals that a couple of years ago required in-person meetings and physical signatures now require a simple digital click.
Anel Zhuvanizhbayeva.
However, despite the rapid enhancement of digital tools, the regulation of online contracts in many other jurisdictions, including Kazakhstan, remains a grey zone. The Civil Code permits transactions to be concluded in electronic form, and for many years this has been done primarily through the official Electronic Digital Signature (EDS) issued by the relevant public authority. Under Kazakh law, this type of signature is considered the functional equivalent of a handwritten one.
An SMS code, a password, a checkbox, or a scanned image of a signature do not qualify as an official EDS under the legislation, they qualify as a simple signature. The simple signature methods provide convenience, but they do not meet the legal threshold of secure authentication. To address this gap and make a convenient workflow for businesses, the government introduced a pilot provision in 2024 valid until July 2026 (Article 20-1 of the Law on Informatization). If certain conditions are met, this temporary regime allows the use of a simple electronic signature, such as SMS codes, as an EDS.
The intent of this pilot was to facilitate cross-border interactions and simplify contract execution for small entrepreneurs, foreign companies, and businesses engaged in digital commerce. In practice, it enables parties to sign agreements using methods far easier than a formal EDS. Yet the law also sets a rule that a simple electronic signature becomes legally equivalent to a traditional digital signature only if the parties have a prior written agreement explicitly recognizing its use.
And this is precisely where the grey zone emerges. When small entrepreneurs conclude online deals, they rarely execute such written acknowledgments. Platforms often fail to inform users of the legal status of their digital actions, and parties seldom document their consent to use simple electronic signatures. As a result, agreements signed through SMS codes or quick online confirmations may appear valid technologically, yet remain vulnerable legally. In the absence of written consent, such contracts risk being challenged or become invalid.
Other jurisdictions have already addressed similar challenges. For example, the European Union’s eIDAS Regulation clearly identifies between types of electronic signatures (simple, advanced, and qualified) and mandates verifiable proof of consent. Singapore requires digital platforms to embed authentication standards that demonstrate a user’s intention to contract. These frameworks offer clarity where Kazakhstan’s pilot regime currently provides some uncertainty.
Today many companies offer online contracting services as a provider for signing contracts via their platforms. This makes business flows easier, but it also requires more caution. Before accepting any online offer, users should check who the provider is, whether the platform is trustworthy, and how it verifies identity. It is important to read what counts as a “signature” on that platform, because not every SMS code or click is legally binding. A few minutes of checking can prevent major problems later. Especially if the party will be requested to demonstrate a contract signed electronically to the court
It is also helpful to use simple templates when agreeing to use a simple electronic signature. A short form or clause confirming that both sides accept SMS or other digital methods as a signature can turn a risky agreement into a secure one. Many small businesses in Kazakhstan already do this informally, but having a clear structure makes the process easier and protects both parties. With small steps like these, online contracts can stay convenient while becoming much safer.
In any case, in my opinion, Kazakhstan is moving in the right direction. The shift toward online contracting reflects a global trend toward convenience, speed, and accessibility, compared to paper-based agreements that still require physical presence, stamps, or manual signatures. Digital tools make it possible to conclude deals efficiently, even when parties are separated by borders or time zones. This convenience is not only desirable, but essential for a modern economy.
What remains is to ensure that the legal framework keeps pace. By establishing clear standards for digital consent and electronic signatures, Kazakhstan can preserve the advantages of online contracting while reducing the risks that come with legal uncertainty. With thoughtful reforms, the country can transform today’s grey zone into a transparent and reliable system, one where convenience and legal certainty reinforce rather than contradict each other.
The author is Anel Zhuvanizhbayeva, a graduate student of the Nazarbayev University Graduate School of Public Policy.
Disclaimer: The views and opinions expressed in this article are those of the author and do not necessarily reflect the position of The Astana Times.
