May 29, 2023 05:05
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 Region
CIS, 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 Expansion
Bybit’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.
World Crypto Global
