Bybit and Binance, two of the largest global cryptocurrency exchanges, are closer to turning over a new leaf in Kazakhstan. Both exchanges announced on September 6 that they had secured critical authorizations from the Astana Financial Services Authority, placing them closer toward becoming fully regulated Digital Asset Trading Facilities in the country.
Bybit Secures Full Authorization, Binance Nears Full Regulatory License
Now it has obtained a full license from Kazakhstan’s regulators. The wider latitude will enable Bybit, which already operates in Kazakhstan, to further expand in the country and, indeed, across the wider CIS. The regulatory seal of approval follows an extensive regime of compliance measures, including checks on AML.
In the meantime, Binance was also given the green light by AFSA for a full regulatory license. For Binance, this process involved even more complicated clearances-ISO certifications and independent auditor verification of the exchange. These attest to Binance’s security and operational integrity at the highest level. It is the first DASP in Kazakhstan that received such consent.
Kazakhstan’s Push for a Regulated Digital Asset Market
Kazakistan has indeed been very active in regard to regulating the market of digital assets. The permits given to Bybit and Binance are part of a wider initiative of the national strategy for turning the country into a modern regulator of digital asset trading.
Last year, the financial regulators of Kazakhstan cracked down on nearly 1,000 crypto exchanges that were deemed to be non-compliant, ensuring only a few of them could operate within those tight frameworks. It was an idea to save investors from fraud and other criminal activities like money laundering and pyramid schemes.
This was revealed in a statement by Vishal Sacheendran, Binance’s Head of Regional Markets: “We are delighted with this regulatory milestone and look forward to obtaining the full license as well as continuing to serve our users in Kazakhstan and contribute to the growth of the local digital-asset ecosystem.”
Kazakhstan’s Regulatory Commitment to Compliance
The Kazakhstani regulatory authorities have been in a state of high alert to protect the digital asset trading environment. The Financial Monitoring Agency, FMA, has shut down several unregistered platforms and blocked crypto-transactions with illegal purposes valued at $75.4 mln. That act is proof that the country is in the fight against crypto-related crimes.
Under the country’s Digital Assets Law, which is due to take effect this February 2023, any kind of digital currencies must be issued and circulate with the help of a national license. The fact that Bybit and Binance are about to attain full regulatory status in Kazakhstan means the Central Asian country is en route to sealing its position as a top crypto-friendly jurisdiction that is opening up new opportunities for digital asset trading and investment in the region.
A Bright Future for Crypto in Kazakhstan
Bybit and Binance Cement Regulatory Status in Kazakhstan, Poised for Full Suite of Services As Bybit and Binance firm up their regulatory status in Kazakhstan, the companies are likely to offer a full suite of services ranging from virtual asset trading to digital asset custody. This also bodes well with Kazakhstan becoming a key player in the global digital asset ecosystem, allowing for more businesses and investors to be welcomed into its regulated environment.
By allowing this development, it means that Kazakhstan protects its home market, yet at the same time, elevates the bar of what crypto exchanges can achieve within a compliant and secure environment.
