Bybit Receives Pre-Approval In Kazakhstan As Crypto Custody Service Provider

Cryptocurrency exchange Byte continues to expand its operations after receiving “in-principle” approval from regulators in Kazakhstan.

On May 29, the exchange announced its pre-approval from Kazakhstan’s Astana Financial Services Authority (AFSA) to operate as a digital asset trading facility and as a custody service provider at the Astana International Financial Center (AIFC).

Bybit co-founder and CEO Ben Zhou said he believes in the “promising potential” of the Commonwealth of Independent States (CIS) as an area for growth in the crypto industry.

Zhou also emphasized Bybit’s commitment to complying with local regulations. This comes after it was recently flagged by regulators in Japan for operating without registration.

“It has always been our primary objective to conduct our business in compliance with the relevant rules and regulations.”

As it stands the “in-principle” approval granted to Bybit, the company is subject to pre-conditions that will lead to permanent authorization to launch the service to local people once the application process is fully completed.

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Over the past few months, Bybit has been in the process of expanding its service offerings. On May 2, it announced that it would start providing crypto lending services to users.

In March, the company partnered with Mastercard to introduce a new debit card for crypto payments.

The latest move to offer services in Kazakhstan comes as the country continues to position itself as a regional hub for crypto, mining and blockchain.

Back in February local authorities announced a new mandate that 75% of revenue from crypto mining must be sold through a crypto exchange in a bid to crack down on tax evasion. A few months later, Kazakhstan revealed that it collected almost $7 million in crypto taxes for 2022.

Kazakhstan is currently in the pilot phase of developing a digital currency.

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