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Azerbaijan Proposes Central Bank Licensing for All Crypto Firms

Regulators say the change aims to protect financial stability by bringing exchanges and other crypto services into a supervised, rule‑based framework.

Overview

  • The Central Bank of Azerbaijan has completed a draft virtual‑assets law and submitted it for review, and the regulator says it could be adopted before the end of the year.
  • Under the draft, every company dealing in virtual assets would need a licence from the central bank before operating in Azerbaijan’s domestic market.
  • Licensed firms would be placed under continuous central‑bank supervision and required to comply with anti‑money‑laundering, counter‑terrorism financing, and mandatory customer identification rules.
  • If enacted, the law would bar unlicensed providers from offering services inside Azerbaijan and could change how foreign exchanges gain domestic access; Binance has held talks with the central bank about regulatory cooperation.
  • The proposal is presented as part of a 2027–2030 financial‑market development strategy and comes alongside the central bank’s continued caution on issuing a central bank digital currency as it studies global examples.