Bybit, a cryptocurrency exchange, has been given permission to work in Kazakhstan. Crypto companies see Kazakhstan as the gateway to the former Soviet space. The trading platform wants to grow its presence in the region and other emerging countries.
Bybit is on track to get a crypto license in Kazakhstan
Bybit, a crypto spot exchange based in Singapore that is one of the best in the world, is now one step closer to getting a license to operate in Kazakhstan. On Tuesday, the company said that the Astana Financial Services Authority (AFSA) had given it permission in principle.
A press release said, “The in-principle approval is subject to pre-conditions that will lead to permanent authorization once Bybit finishes the full application process.” When it gets a license, it will be able to operate as a digital asset exchange and custody service provider.
The Astana International Financial Centre (AIFC), which is Kazakhstan’s financial hub and is based in the city Nur-Sultan (formerly Astana), is regulated by AFSA. Under the country’s current rules, these services can only be offered by sites that are registered in the country.
Bybit said that Kazakhstan is an entrance to the Commonwealth of Independent States (CIS), an organization of former Soviet countries that work together. The exchange thinks this is a fast-growing market, quickly adopting cryptocurrency and related activities like mining and blockchain development.
Bybit co-founder and CEO Ben Zhou stated, “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.”
China’s crackdown on the mining industry in 2021 turned Kazakhstan into a mining hub. Since then, Kazakhstan has tried to limit electricity use in the mining industry, which is blamed for the country’s power shortage. It also took steps to regulate the crypto space through new legislation.
Ben Zhou also said, “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.”
Bybit’s announcement comes after Binance, the world’s biggest crypto exchange by daily trading volume, got approval in principle to work with cryptocurrencies in Kazakhstan last August. It got a full license in October 2022.