1. New Milestone for Binance and Bybit
2. Role of AFSA
3. Current Challenges and Future Prospects of Kazakhstan's Crypto Market

Binance and Bybit have received consent from AFSA to receive full DATF licenses in Kazakhstan. However, the actual licenses have not yet been issued. Let's explore more about this important news for Binance and Bybit.

New Milestone for Binance and Bybit

The AFSA, the regulatory body for Kazakhstan's Astana International Financial Centre (AIFC), plays a crucial role in regulating digital asset trading in the country. The full DATF license will allow Binance and Bybit to offer comprehensive services, including investment opportunities, advanced trading, and custody solutions for digital assets. Binance entered the Kazakhstan market in August 2022 with 'in-principle' approval from AFSA, later receiving a permanent license in October 2022. However, following the 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, leading to the blockage of 980 exchanges, including major platforms like Coinbase.

Role of AFSA

Bybit, which received in-principle approval from 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.

Current Challenges and Future Prospects of Kazakhstan's Crypto 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. 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.

The licensing progress for Binance and Bybit reflects Kazakhstan's efforts to establish a regulated crypto market despite existing challenges. The country aims to take a leading position in the global digital asset ecosystem.