Binance and Bybit Closer to Becoming Kazakhstan’s First Regulated DATFs

Binance ByBit Crypto Regulation

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Hassan Shittu

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Hassan Shittu

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Hassan, a Cryptonews.com journalist with 6+ years of experience in Web3 journalism, brings deep knowledge across Crypto, Web3 Gaming, NFTs, and Play-to-Earn sectors. His work has appeared in...

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Last updated: 

September 5, 2024

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Crypto exchanges Bybit and Binance announced on September 6 important strides toward becoming fully regulated Digital Asset Trading Facilities (DATFs) in Kazakhstan. Both exchanges received full authorization from the Astana Financial Services Authority (AFSA).

Kazakhstan pushed for the approval and is now moving the country closer to establishing itself as a regulated Digital Asset Trading Facility (DATF)

Bybit Secures Full Authorization License in Kazakhstan as Binance Gets Consent for Full Regulatory License

The announcement follows a stringent regulatory process, including comprehensive anti-money laundering (AML) checks and compliance assessments.

The new authorization positions Bybit to offer a wider range of crypto-related services in Kazakhstan and the broader Commonwealth of Independent States (CIS) region.

Similarly, Binance has also secured the regulatory nod from AFSA. However, Binance’s rigorous assessment process included obtaining ISO certifications and passing external audits, ensuring the exchange adheres to the highest security and operational integrity standards.

Notably, Binance is the first Digital Asset Service Provider (DASP) to obtain AFSA consent for a full regulatory license.

Vishal Sacheendran, Binance’s Head of Regional Markets, shared this new milestone for the exchange.

“We look forward to getting the full license and continuing to serve our users in Kazakhstan and contributing to the growth of the local digital-asset ecosystem.”

With these full licenses, both Bybit and Binance are set to offer a wide array of services in Kazakhstan, including virtual asset trading, crypto investment dealings, and digital asset custody.

Push for Compliance: Kazakhstan’s Stance Before Now

Kazakhstan’s proactive approach to regulating the crypto industry has seen it emerge as a burgeoning crypto powerhouse.

Last year, the country’s financial regulator shut down nearly 1,000 non-compliant crypto exchanges as part of its broader strategy to protect investors and combat illicit activities within the digital asset space.

The protection claim was accompanied by a recent report showing that Kazakhstan’s anti-money laundering agency officials blocked illegal crypto transactions worth $75.4 million, all of which are tied to pyramid schemes and scams.

This regulatory clampdown is part of Kazakhstan’s commitment to establishing a compliant and secure environment for digital asset trading. The Astana International Financial Center (AIFC) plays a central role in overseeing the licensing process for crypto operations.

Kazakhstan’s Financial Monitoring Agency (FMA) has been particularly vigilant, blocking 980 illegal platforms operating without proper registration and launching multiple investigations into unregistered exchange operations and potential money laundering activities.

These efforts are tightly held because the country’s Digital Assets Law, enacted in February 2023, mandates that digital currencies can only be created and traded under a national license.

With both exchanges now fully authorized, Kazakhstan is solidifying its stance as a regulated crypto-friendly jurisdiction and paving the way for greater digital asset participation and investment opportunities in the region.