Bybit secures pre-approval as a crypto custody service provider in Kazakhstan

May 30, 2023

Bybit announced on May 29 its pre-approval obtained from the Astana Financial Services Authority (AFSA) in Kazakhstan. The approval grants Bybit the ability to operate as a digital asset trading facility and custody services provider at the Astana International Financial Centre (AIFC).

Ben Zhou, the 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 dedication to adhering to local regulations, particularly in light of the recent scrutiny it faced from Japanese regulators for operating without registration.

Bybit has been granted "in-principle" approval, which entails fulfilling certain pre-conditions before obtaining permanent authorization to provide services to the local community. Once the application process is fully completed, Bybit will be authorized to commence its services for the locals.

Bybit has been actively expanding its service offerings in recent months. On May 2, the company announced the introduction of crypto lending services for its users. In a collaborative effort with Mastercard, Bybit also launched a new debit card for cryptocurrency payments back in March.

The decision to offer services in Kazakhstan aligns with the country's progress in becoming a regional hub for cryptocurrency, mining, and blockchain. In February, local authorities implemented a mandate requiring 75% of revenue from crypto mining to be sold through a crypto exchange, aiming to combat tax evasion. As a result, Kazakhstan reported collecting approximately $7 million in crypto taxes in 2022.

Furthermore, Kazakhstan is currently in the pilot phase of developing its central bank digital currency, showcasing its forward-thinking approach to digital currencies and financial innovation.

Source: Cointelegraph

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