Bybit cryptocurrency exchange, in a bid to continue its expansion, has received “in-principle” approval to operate in Kazakhstan as a crypto custody services provider.
The exchange announced on May 29 that it had received preliminary 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, believes that the Commonwealth of Independent States (CIS) has “promising potential” for development in the crypto industry.
Additionally, Zhou emphasized Bybit’s commitment to complying with local regulations. This comes after Japanese regulators recently flagged Bybit for operating without registration.
“It has always been our primary objective to operate our business in compliance with relevant rules and regulations.”
In accordance with the “in-principle” approval granted to Bybit, the company is subject to preconditions that will result in permanent authorization to begin providing services to locals once the application process is finalized.
Bybit has been in the process of expanding its service offerings over the past few months. On May 2, it was announced that crypto lending services would be made available to users.
In March, the company partnered with Mastercard to offer a new debit card for cryptocurrency transactions.
Kazakhstan has steadily become a regional hub for crypto, mining, and blockchain, prompting the latest step to offer services there.
Local officials declared in February that 75% of crypto mining revenue must be sold on a cryptocurrency exchange to combat tax evasion. A few months later, Kazakhstan disclosed that it had collected approximately $7 million in cryptocurrency taxes in 2022.
Kazakhstan is presently in the pilot phase of developing a digital currency issued by its central bank.