Law enforcement in Kazakhstan has been taking down several crypto mining rigs. The sudden spike in mining activity forced the government to look into it. The country has been intensively fending off crypto-related fraud. Amidst all of this, it decided to bring the world’s largest crypto exchange into its territory. Binance announced it had managed to pocket an in-principle approval from the Astana Financial Services Authority [AFSA] to operate in Kazakhstan.
In a recent blog post, Binance revealed that it had bagged the approval and would now be able to roll out a Digital Asset Trading Facility and Provide Custody in the Astana International Financial Centre [AIFC]. Crypto exchanges were allowed to roll out bank accounts and operate legally in the region only since June 2022.
Binance has been on an expansion spree. Therefore, the latest news does not seem to surprise the community. Commenting on the development, Changpeng Zhao, the CEO of the exchange, said,
“Kazakhstan has shown itself to be a pioneer in Central Asia crypto adoption and regulation. This further signifies Binance’s commitment to being a compliance-first exchange and providing products and services in a safe and well-regulated environment across the globe.”
Additionally, Binance must complete the application process, and the exchange will be allowed to deliver its services in the region. Previously, the head of AFSA, Nurkhat Kushimov, suggested that they would conduct a deep and thorough background check” before handing out licenses. Along with this, the platform would maintain constant supervision.
Binance X Kazakhstan
Changpeng Zhao has managed to take Binance into every part of the world. These efforts weren’t novel. The exchange in May revealed that it had signed a memorandum of understanding [MOU] with the Kazakhstan Ministry of Digital Development, Innovations, and Aerospace Industry. Through this, the exchange was allowed to aid Kazakhstan in creating a regulatory framework for cryptocurrencies.
The surge in demand for crypto is likely to open doors for similar developments in the region. However, most platforms veer into areas that are well regulated. Therefore, clear laws are essential. Nurkhat Kushimov, Chief Executive Officer of AFSA, recently said,
“Large investors seeking new markets need clear-cut and well-managed rules, as well as high standards of regulatory practice. When a regulator meets these requirements, it creates collaboration based on trust and an ecosystem where players can work safely and efficiently. We believe that Binance’s work will further develop this vibrant ecosystem of digital assets industry locally and regionally.”