TL;DR Breakdown
- Cryptocurrency exchange Bybit secures “in-principle” approval to operate as a digital asset trading facility and provide custody services in Kazakhstan.
- The approval comes with certain pre-conditions that need to be fulfilled before the exchange can begin servicing locals in Kazakhstan.
In a significant step towards global expansion, Bybit, a leading player in the cryptocurrency exchange arena, has recently announced that it has secured preliminary approval to operate as a digital asset trading facility and provide custody services in Kazakhstan.
This preliminary, or “in-principle,” approval from the Astana Financial Services Authority (AFSA) paves the way for Bybit’s entry into the burgeoning digital currency market of this Commonwealth of Independent States (CIS) country.
Betting on the CIS region
Bybit’s co-founder and CEO, Ben Zhou, has expressed his bullish perspective on the CIS region, highlighting it as a promising ground for the development and growth of the crypto sector.
This viewpoint is based on the increasing traction of digital currencies and their underlying blockchain technology across these countries. The approval from AFSA places Bybit in a strong position to capitalize on the prospective growth of this region.
Emphasizing Bybit’s strict adherence to compliance, Zhou stated, “It has always been our primary objective to operate our business in compliance with relevant rules and regulations.”
This statement comes on the heels of recent regulatory scrutiny in Japan, where the exchange was flagged for operating without proper registration.
The “in-principle” approval is a significant milestone, but it’s not the final step. Bybit must meet certain pre-conditions before it can be fully authorized to serve local users in Kazakhstan.
These conditions are expected to include adherence to local and international regulatory norms, protection of investor interests, and the establishment of a secure digital asset trading environment.
Bybit’s expansion agenda
This recent development in Kazakhstan is part of Bybit’s ongoing expansion strategy. The cryptocurrency exchange has been introducing a wide array of services to its users in the past few months.
Back in May, Bybit declared that it would be launching crypto lending services, broadening the array of financial services it provides to users.
Further expanding its offering, Bybit collaborated with Mastercard in March to introduce a new debit card specifically designed for cryptocurrency transactions.
This move not only marked a major development in Bybit’s service offerings but also symbolized a step forward in enhancing crypto’s mainstream acceptance.
The move to establish services in Kazakhstan aligns with the country’s recent positioning as a regional hub for crypto mining and blockchain.
Kazakhstan has been actively fostering its crypto and blockchain ecosystem, with a strong regulatory focus to ensure a fair and transparent market.
Earlier this year, Kazakhstan’s government mandated that 75% of revenue from crypto mining should be exchanged through crypto exchanges. This measure is intended to curb tax evasion and increase transparency in the rapidly growing sector.
The implementation of this policy has been successful, with the country collecting around $7 million in crypto taxes in 2022 alone.
Furthermore, Kazakhstan is piloting the development of its own central bank digital currency (CBDC), reflecting its commitment to embracing the crypto revolution.
The in-principle approval for Bybit is not just a win for the company, but also signifies an encouraging step for the broader crypto ecosystem in Kazakhstan and the CIS region.
As Bybit prepares to establish its presence here, it’s clear that the digital currency landscape in the region is on an upward trajectory.
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