Bybit Secures Preliminary Approval to Operate in Kazakhstan

Bybit, a cryptocurrency derivatives exchange, has been issued an ‘in-principle’ license by the regulators in Kazakhstan, according to a press release shared with Finance Magnates on Monday.The license, issued by Astana Financial Services Authority (AFSA), allows Bybit to run a digital asset trading facility and to offer custody services at the Astana International Financial Centre (AIFC), which is a financial hub based in Astana. According to the press release, the approval subjects the exchange to pre-conditions that will lead to permanent authorization once the full license application process is complete.

“We are delighted to receive an in-principle approval from AFSA,” Bybit CEO and Co-Founder Ben Zhou said, adding that “we believe in the promising potential of the Commonwealth of Independent States (CIS) and are eager to open up our world-class trading platform from crypto enthusiasts in the region.”

A ‘Gateway’ to the CIS RegionCIS, a regional intergovernmental organization formed after the collapse of the Soviet Union, resents a vibrant market for the adoption of digital assets and is a promising hub for cryptocurrencies, mining, and blockchain technology, ByBit noted.

Last month, Bybit announced a global headquarters for its operations in Dubai to strengthen its presence in the Middle East and North Africa (MENA) region following a 50% increase in the exchange’s clients. Situated at the Dubai World Trade Center, Bybit’s new headquarters would enable Bybit to organize hackathons, launch educational programs, and nurture entrepreneurial activities in the Web 3 space.

Bybit’s Challenges amid Global ExpansionBybit’s push for international expansion has not been without challenges. Japan’s Financial Services Agency (FSA) issued a warning against the platform this year, warning it against operating in the country without registration. The financial watchdog also slammed a similar warning against several other exchanges including BitForex, MEXC Global, and Bitget.

Besides the regulatory hurdles, the exchange was forced to trim its workforce towards the end of last year, five months after announcing another 30% staff reduction. The action followed a prolonged crypto winter which pushed several companies in the cryptocurrency space into bankruptcy. Additionally, Zhou recently revealed that the exchange had a $150 million exposure to the bankrupt crypto lender Genesis Global Trading. He noted that $120 million of this amount was collateralized and had already been liquidated.

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This article was written by Jared Kirui at www.financemagnates.com.

Robert Wilson
Robert Wilson author

As the overseer of NicheBot's editorial content, I am committed to ensuring that all information published on our website is both accurate and relevant to our readers. My fervent support for the crypto industry has led me to closely monitor the developments within it since 2012, and I have contributed extensively to discussions and debates surrounding the world of Bitcoin.

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