The cryptocurrency exchange seeks to expand its presence in the Asian part of the former Soviet Union.

Bybit, a Singapore-based platform for cryptocurrency trading, has received green light to operate in Kazakhstan, where it expects a full-fledged business license from the Kazakh financial regulator in a near future.

The crypto operator said on its blog, “On 19 May 2023, Bybit secured an in-principle approval from the Astana Financial Services Authority in Kazakhstan. This milestone underscores Bybit's unwavering commitment to expanding its presence in vibrant and emerging markets. Upon completion of the full application process, Bybit will be allowed to operate a Digital Asset Trading Facility and provide Custody Services at the Astana International Financial Centre in Kazakhstan.” 

When Bybit receives the license, it will be able to operate as a digital asset exchange and custody service provider, a status granted to registered platforms only.

Bybit co-founder and CEO Ben Zhou described Kazakhstan is a gateway to the Central Asian region of the former Soviet Union, which is generally warmer to crypto businesses compared to governments in tightly-regulated developed nations. Kazakhstan also tolerates activities such as mining and blockchain development, which are flourishing in the country following China’s total crackdown on the crypto industry in 2021.

The world’s largest crypto exchange by daily trading volume, Binance, also received an in-principle approval to work with cryptocurrencies in Kazakhstan in August 2022 and obtained a full license in October.

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Bybit’s joy about Kazakhstan is overshadowed by news on 31 May that it will be exiting the Canadian market. From that date, it will no longer be able to accept account opening applications from Canadian residents or nationals. Canadian customers will not be able to make new deposits or enter new contracts for Bybit products and services from 31 July, while 30 September 2023 is set as the deadline to wind down and manage their positions. 

Established in 2018 with registration in the British Virgin Islands and headquarters in Singapore (Dubai, UAE, since January 2023), Bybit is now the fifth largest crypto exchange with around 300 cryptocurrencies in use and a 2.1% share of the global market, according to Coinranking.