Azerbaijan’s central bank has completed work on a fundamental law regulating the handling of virtual assets. Fidan Tofedi, the head of the regulatory department for financial technology and innovation, confirmed that the final version of the document had already been sent to government agencies. According to her, if the legislative process goes according to plan, the country will get a full legal field for cryptocurrency by the end of 2026.

The regulator is changing its approach, shifting its focus from simply maintaining stability to creating an environment for technological innovation. The regulatory sandbox launched in 2024 is a successful example of such a policy. During this time, the department reviewed 35 applications from developers of new fintech products and now plans to move to a more open business model.

Another major achievement was the introduction of open banking interfaces, which Tofedi called a success. This initiative, which allows citizens to manage all their accounts through a single application, has already been joined by all the banks of the country. In the future, the CB intends to actively integrate solutions based on neuronetworks into the work of financial institutions. Special analytical metrics, including a financial sector digital maturity index, will be developed to assess progress.

Baku initiatives fit into the overall trend of legalization of digital assets in Central Asia. Neighboring Kazakhstan, for example, enacted legislation early in 2026 and launched the region’s first exchange-traded crypto fund six months later.