Bybit, a prominent cryptocurrency exchange, continues to broaden its reach as it gains preliminary approval from regulatory authorities in Kazakhstan. On May 29, the exchange confirmed its ‘in-principle’ authorization from the Astana Financial Services Authority (AFSA). This permits Bybit to function as a digital asset trading platform and custodial service provider within the Astana International Financial Centre (AIFC).
Regulatory Compliance and New Ventures
Ben Zhou, Bybit’s co-founder and CEO, views the Commonwealth of Independent States (CIS) as a region ripe with potential for growth in the cryptocurrency industry. Notably, Zhou emphasized Bybit’s dedication to adhering to local regulations, particularly after recent allegations of operating unregistered in Japan.
Zhou stated, “Our primary aim has always been to run our business in harmony with relevant laws and regulations.” This provisional approval, granted to Bybit, comes with preconditions leading to permanent authorization to service locals once the application process is successfully completed.
Also Read: Kazakhstan Financial Monitoring Agency Disbands Illegal Crypto Exchanges
Recently, Bybit has been focusing on expanding its services. It announced its plans to offer users cryptocurrency lending services on May 2. Additionally, Bybit collaborated with Mastercard in March to introduce a new debit card for cryptocurrency payments.
Kazakhstan: An Emerging Crypto Hub
The decision to extend services to Kazakhstan aligns with the country’s ongoing efforts to establish itself as a regional center for cryptocurrency, mining, and blockchain technology. In February, local officials implemented a new policy mandating that 75% of revenue from cryptocurrency mining must be sold through a crypto exchange, aiming to combat tax evasion. This move saw Kazakhstan garner around $7 million in cryptocurrency taxes in 2022. Presently, Kazakhstan is in the early stages of developing its own central bank digital currency.
