Both exchanges have received AFSA consent to become Kazakhstan’s first fully licensed DATFs.
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 in regulating digital asset trading. The full DATF license will allow Binance and Bybit to provide comprehensive services, including investment opportunities, advanced trading, and custody solutions for digital assets.
Binance entered the Kazakhstan market in August 2022 with “in-principle” authorization from the AFSA. It later received a permanent license in October 2022. However, following a restructuring of the DATF framework in January 2023 and the passage of the Digital Assets Law in February 2023, the AFSA intensified its enforcement actions against unlicensed crypto exchanges. This crackdown led to the blockage of 980 exchanges, including major platforms like Coinbase.
Source: X
Bybit, which 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 reflects Kazakhstan’s commitment to developing a robust and regulated digital asset market.
Kazakhstan has emerged as a key player in the global crypto landscape, particularly as a destination for crypto miners. The country saw a surge in mining activities following China’s crackdown on cryptocurrency mining in 2021. While miners have become a significant source of tax revenue for the Kazakh government, they face challenges related to power consumption.
Source: X
In October, major mining operations in Kazakhstan sent an open letter to President Kassym-Jomart Tokayev, highlighting concerns over high electricity rates. Despite paying less than half the average rate in the United States, the miners have struggled with prohibitively expensive energy costs.
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