Bybit Receives “In-Principle” Approval to Operate in Kazakhstan, Expanding Its Crypto Operations in the Region

Bybit Receives “In-Principle” Approval to Operate in Kazakhstan, Expanding Its Crypto Operations in the Region

Cryptocurrency exchange Bybit is continuing its expansion efforts with the recent receipt of “in-principle” approval from regulators in Kazakhstan. The exchange has announced its pre-approval from Kazakhstan’s Astana Financial Services Authority (AFSA) to operate as a digital asset trading facility and custody services provider at the Astana International Financial Centre (AIFC).

Ben Zhou, co-founder and CEO of Bybit, expressed his belief in the promising potential of the Commonwealth of Independent States (CIS) as a region for crypto industry growth. Zhou also emphasized Bybit’s commitment to adhering to local regulations, particularly in light of recent regulatory concerns in Japan where Bybit was flagged for operating without registration.

Under the “in-principle” approval granted to Bybit, the company is required to fulfill pre-conditions that will ultimately lead to permanent authorization to offer its services to locals once the application process is fully completed.

Bybit has been actively expanding its service offerings in recent months. In May, the exchange announced its plans to introduce crypto lending services for users. Additionally, Bybit collaborated with Mastercard in March to launch a new debit card enabling cryptocurrency payments.

This latest move to provide services in Kazakhstan aligns with the country’s growing status as a regional hub for cryptocurrencies, mining, and blockchain technology. In February, local authorities introduced a mandate stipulating that 75% of revenue from crypto mining must be sold through a crypto exchange as a measure to combat tax evasion. Furthermore, Kazakhstan reported approximately $7 million in crypto taxes collected in 2022.

Kazakhstan is currently in the pilot phase of developing its own central bank digital currency.