Azerbaijan Proposes Licensing Framework for Virtual Asset Firms

Azerbaijan is pushing forward with crypto regulation by proposing a licensing framework for virtual asset firms. The country's Central Bank has drafted a law requiring all companies dealing with cryptocurrencies to obtain a central bank license before operating in the domestic market.

Under the proposed legislation, licensed businesses would face ongoing regulatory supervision and have to meet strict standards. They would also need to comply with anti-money laundering and counter-terrorism financing rules while carrying out mandatory customer identification.

The Central Bank of Azerbaijan considers this legislation part of its financial market development strategy for 2027-2030, which is being built using real data. Protecting the stability of the country's financial system remains one of the regulator's main priorities.