Binance and Bybit Near Full Licensing in Kazakhstan

The AFSA, the regulatory body for Kazakhstan's Astana International Financial Centre (AIFC), oversees the country's special economic zone and is crucial

Binance and Bybit are nearing full licensing in Kazakhstan, having received consent from the Astana Financial Services Authority (AFSA).

The AFSA, which serves as the regulator for Kazakhstan’s Astana International Financial Centre (AIFC), plays a crucial role in overseeing the country’s special economic zone, including the regulation of digital asset trading.

Once fully licensed as a Digital Asset Trading Facility (DATF), Binance and Bybit will be permitted to offer a comprehensive suite of services, encompassing investment opportunities, advanced trading, and custody solutions for digital assets.

Binance initially forayed into the Kazakhstan market in August 2022, obtaining “in-principle” authorization from the AFSA. This was followed by a permanent license in October 2022. However, a restructuring of the DATF framework in January 2023 and the passage of the Digital Assets Law in February 2023 prompted the AFSA to step up enforcement actions against unlicensed crypto exchanges.

As part of this crackdown, 980 exchanges were blocked, including major platforms like Coinbase.

Meanwhile, Bybit, having received in-principle approval from the AFSA in May 2023, has also been undergoing rigorous compliance audits to qualify for the full DATF license.

The regulatory progress of both exchanges serves to highlight Kazakhstan’s commitment to establishing a robust and regulated digital asset market.

Kazakhstan has emerged as a significant player in the global crypto landscape, particularly as a destination for crypto miners. The country experienced a surge in mining activities following China’s crackdown on cryptocurrency mining in 2021. While miners have become a substantial source of tax revenue for the Kazakh government, they face challenges related to power consumption.

In October, major mining operations in Kazakhstan sent an open letter to President Kassym-Jomart Tokayev, expressing concerns over high electricity rates. Despite paying less than half the average rate in the United States, the miners highlighted their struggles with prohibitively expensive energy costs.

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