Cryptocurrency exchange Bybit has received an in-principle approval to work in Kazakhstan, a jurisdiction increasingly seen by crypto companies as a gateway to the former-Soviet space. The trading platform wants to expand its presence in the region and other emerging markets.
Bybit on Route to Winning Kazakhstan Crypto License
Singapore-based Bybit, one of the world’s leading crypto spot exchanges, is now a step closer to becoming a licensed crypto operator in Kazakhstan. On Tuesday, the company announced it has obtained in-principle approval from the Astana Financial Services Authority (AFSA).
“The in-principle approval subjects Bybit to pre-conditions leading to permanent authorization upon Bybit’s completion of the full application process,” a press release explained. When licensed, it will be able to operate as a digital asset exchange and custody service provider.
AFSA is the regulatory body overseeing the Astana International Financial Centre (AIFC), Kazakhstan’s financial hub based in the capital Nur-Sultan (formerly Astana). Under the country’s current rules, only platforms registered there are allowed to offer such services.
Bybit noted that Kazakhstan is a gateway to the Commonwealth of Independent States (CIS), a regional organization uniting several former-Soviet states. The exchange believes this is a fast-growing market which is rapidly embracing cryptocurrencies and related activities such as mining and blockchain development.
“We are delighted to receive an in-principle approval from AFSA. We believe in the promising potential of the CIS and are eager to open up our world-class trading platform for crypto enthusiasts in the region,” Bybit co-founder and CEO Ben Zhou stated.
Kazakhstan became a mining hub following China’s crackdown on the industry in 2021 but has since tried to limit electricity consumption in the sector blamed for the country’s power deficit. It also took steps to regulate the crypto space through new legislation.
“It has always been our primary objective to operate our business in compliance with relevant rules and regulations. Bybit firmly supports the regulatory objective of establishing a compliant, secure, and transparent cryptocurrency industry to benefit users,” Ben Zhou added.
Bybit’s announcement comes after the world’s largest crypto exchange by daily trading volume, Binance, obtained in-principle approval to work with cryptocurrencies in Kazakhstan last August and was eventually granted full license in October 2022.
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