Azerbaijan submits virtual asset regulation bill, passage expected by year-end

The draft would require crypto businesses to obtain central bank licenses and comply with AML and KYC rules under the country’s 2027-2030 financial market regulation strategy.

Summary

Azerbaijan’s central bank has prepared a bill to regulate the virtual asset market and sent it for review, with approval expected by the end of the year, Bits.media reported. The proposed framework would require crypto businesses to secure central bank licenses and operate under continuing supervision, including AML (anti-money laundering) and KYC (customer identity checks) compliance. Fintech and Innovation Director Fidan Tofidi said the measure forms part of Azerbaijan’s 2027-2030 financial market regulation strategy, signaling a move toward a formal licensing and oversight regime for digital asset activity.

Terms & Concepts
  • virtual asset: A digital asset used for payments or investment.
  • AML: Anti-money laundering rules to detect illicit funds.
  • KYC: Customer identity checks required by regulated firms.