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-class trading platform Trading Platform In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real In the FX space, a currency trading platform is a software provided by brokers to their respective client base, garnering access as traders in the broader market. Most commonly, this reflects an online interface or mobile app, complete with tools for order processing.Every broker needs one or more trading platforms to accommodate the needs of different clients. Being the backbone of the company’s offering, a trading platform provides clients with quotes, a selection of instruments to trade, real Read this Term 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 Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned). In this sense, blockchain is immune to the manipulation of data, making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tamp Read this Term 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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