Azerbaijan readies mandatory licensing for crypto firms

Fidan Tofidi, director of the Central Bank’s Financial Technologies and Innovation Department, confirmed that the proposed framework mandates strict compliance with anti-money laundering and counter-terrorism financing protocols. Licensed entities will face continuous supervision and must implement rigorous customer identification procedures to maintain their standing in the domestic market.

This legislative shift is a core component of the country's broader 2027–2030 financial market development strategy. While the government formalizes these rules, it remains skeptical of state-backed digital currencies. Central Bank Governor Taleh Kazimov previously signaled that the institution has no immediate plans for a central bank digital currency, citing a lack of proven, large-scale implementations globally. As the regulatory perimeter expands, the Central Bank has reportedly engaged in discussions with major exchanges, including Binance, to help shape the technical mechanisms for this new oversight regime.