The Dubai-based crypto exchange Bybit announced on Monday to receive license pre-approval from the Kazakhstan regulators. As part of Bybit’s expansion to the overseas market, the crypto exchange registered with Kazakhstan’s Astana Financial Services Authority (AFSA) to offer crypto custodial service in the region.
Referring to the May 29 announcement, the crypto exchange confirmed receiving pre-approval to provide crypto-related products and services to the Kazakhstan market. A report issued by the chief executive of Bybit Ben Zhou revealed that Kazakhstan has enormous potential to support the crypto industry’s growth.
Being a member of the Commonwealth of Independent States (CIS), Kazakhstan has “promising potential” for crypto assets.
Suitability of Kazakhstan Market
In his statement, Zhou confirmed that Bybit is a compliant firm seeking to meet the regulatory requirement before proceeding with crypto services. A few months ago, the Bybit team was in crosshairs with the Japanese regulators for failing to comply with the registration requirements.
Following this, Zhou confirmed that the crypto exchange-compliant unit prioritised upholding the regulation’s conformity. He confessed that it is Bybit primary objective to operate in a compliant manner.
Zhou explained the benefits of providing users with a secure and transparent crypto trading platform. He then expressed his delight in receiving pre-approval from AFSA officials.
In his remarks, Zhou pledged to create a world-class crypto trading platform in Kazakhstan to meet customers’ needs. To achieve this, Zhou plans to invest in supporting the global standards for crypto exchange that will boost user experiences.
Reflecting on the pre-approval requirement, the crypto exchange must meet regulatory pre-conditions requirements before final approval. This will involve completing the registration process, which will require the crypto exchange to follow the procedures provided by the Kazakhstani regulators.
After the approval of the Bybit license, the crypto exchange will be permitted to operate as Digital Asset Trading Facility at Astana International Financial Centre (AIFC) in the region. Also, the final regulatory approval allows the crypto exchange to provide custodial services to the Kazakhstan users.
Bybit Expands to Kazakhstan
According to the Bybit post, the crypto exchange plans to broaden its market presence in AIFC and observe the Kazakhstani regulatory framework. The presence of Bybit supports the establishment of a thriving fintech jurisdiction in the region.
A few days ago, the Bybit team invested in broadening its service offerings. According to a blog post shared on May 2, the crypto exchange plans to debut crypto lending services to meet the ever-changing needs of institutional and retail users.
Reportedly, in March, Bybit partnered with Mastercard to introduce a debit card for crypto payment. The implicit expansion efforts made by Bybit compelled the crypto exchange to expand to Kazakhstan, which is seeking to become the regional crypto hub.
Recently the Kazakhstan regulators introduced a new provision to prevent tax cheats. Under the new bill, approximately 75 % of the income generated from crypto mining activities must be traded through a registered trading platform in the region. This transaction plays a crucial role in collecting government taxes in Kazakhstan.
In an earlier report, the regulators confirmed implementing the new bill, which generated $ 7 million from crypto taxes. Besides the imposition of crypto taxes, the central bank of Kazakhstan is working on launching the pilot test for its digital currency.