YEREVAN (CoinChapter.com) — Kazakhstan is taking a significant step forward in its cryptocurrency market as Binance and Bybit are now on the verge of becoming the first fully licensed Digital Asset Trading Facilities (DATF). Moreover, both exchanges have received formal approval from the Astana Financial Services Authority (AFSA), bringing them even closer to securing full regulatory licenses. Furthermore, this development highlights the country’s growing role in the global digital asset landscape.
Binance and Bybit Near Final Approval for Full Licensing in Kazakhstan
In a significant development, AFSA granted in-principle approval to Binance and Bybit, allowing them to operate in the Astana International Financial Centre (AIFC), Kazakhstan’s special economic zone. Binance has been active in the region since August 2022, when it initially received authorization. By October 2022, the company secured a permanent license. However, in January 2023, AFSA restructured the DATF framework, which caused a delay in the process for obtaining full licensing.
Bybit entered the Kazakhstan market in May 2023, receiving its in-principle approval shortly thereafter. Now, both exchanges are undergoing the final stages to secure full DATF licenses, allowing them to provide advanced trading services, investment solutions, and custody for digital assets in Kazakhstan.
Binance and Bybit Near Full Regulatory Approval After Rigorous Audits in Kazakhstan
To meet Kazakhstan’s regulatory standards, Binance and Bybit underwent extensive compliance audits. These audits were designed to ensure the exchanges meet the requirements set by AFSA. In a statement, Binance shared the details of the process, explaining:
“This included an External Financial Audit, obtaining ISO certifications for the organization’s IT systems, and multiple internal and external audits. Furthermore, AFSA conducted a rigorous evaluation of its own to ensure that Binance Kazakhstan met all applicable requirements and maintained top-notch systems and processes.”
The process has been thorough, and while neither Binance nor Bybit holds a full DATF license yet, they have passed critical regulatory milestones in Kazakhstan’s growing cryptocurrency ecosystem.
Kazakhstan Cracks Down on Unlicensed Crypto Exchanges, Blocks Coinbase
Following the passage of Kazakhstan’s Digital Assets Law in February 2023, unlicensed cryptocurrency exchanges faced tough regulations. AFSA acted swiftly, blocking 980 unlicensed exchanges, including prominent platforms like Coinbase. The law marked a shift towards stricter control of digital assets in Kazakhstan.
Kazakhstan has become a major player in cryptocurrency mining since China’s 2021 crackdown on the industry, attracting an influx of miners due to its lower power costs. Despite earlier infrastructure issues regarding rising electricity prices, Kazakhstan seems ready to pave the way for more robust regulatory licensing and to play a larger role in the global digital asset landscape.
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