Azerbaijan Drafts Virtual Asset Regulation Bill Requiring Central Bank Licensing

Azerbaijan has drafted a bill to regulate its virtual asset market and submitted it for review, with formal legislation expected within this year. According to ChainCatcher, Bits.media reported that Fidan Tofidi, director of the fintech and innovation department at the Central Bank of Azerbaijan, said the draft would require all companies conducting crypto-asset business to obtain a license issued by the central bank. Under the proposal, unauthorized firms would be prohibited from operating domestically, while licensed entities would be subject to ongoing supervision. The regulatory framework would include compliance requirements covering anti-money laundering, counter-terrorist financing, and customer identification (KYC). Tofidi added that the framework is set to be incorporated into Azerbaijan’s financial market development strategy for 2027–2030.