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's 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-classtrading 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 its global headquarters for operations in Dubai to strengthen its presence in the Middle East and North Africa (MENA) region following an increase of 50% in the exchange’s clients. Situated at the Dubai World Trade Center, Bybit’s new headquarters would enable the firm to organize hackathons, launch educational programs, and nurture entrepreneurial activities in the Web3 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. On top of that, the financial watchdog slammed a similar warning against several other exchanges, including BitForex, MEXC Global, and Bitget.
Besides regulatory hurdles, the exchange was forced to trim its workforce towards the end of last year, five months after announcing another 30% of staff being cut. The action followed a prolonged crypto winter which pushed several cryptocurrency companies into bankruptcy.
Additionally, Zhou revealed that the exchange suffered financial exposure to the sum of $150 million due 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.
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