Azerbaijan Proposes Central Bank License Requirement for Crypto Businesses

Azerbaijan is proposing a new law that would require all cryptocurrency businesses to obtain a central bank license before operating in the country. The licensed firms would be subject to ongoing supervision and would need to comply with anti-money laundering and customer identification rules.

The proposal is part of Azerbaijan's financial market strategy for 2027-2030, according to Fidan Tofidi, Director of the Central Bank of Azerbaijan's Financial Technologies and Innovation Department. The legislation aims to introduce a formal licensing regime for cryptocurrency businesses in the country.

The licensed firms would be required to comply with anti-money laundering, counter-terrorism financing, and customer identification requirements before offering cryptocurrency services. This move follows discussions between Binance and the Central Bank of Azerbaijan on possible cooperation to develop cryptocurrency market regulations.