Crypto exchange Binance has received preliminary approval to offer trading and custody services for digital assets in Kazakhstan. While the exchange has not yet completed the full application process, the development is already being hailed as a landmark achievement for the company in the Central Asian country, which has only recently taken steps to regulate coin trading.
Binance receives regulatory approval from Kazakhstan authorities
Kazakhstan’s Astana Financial Services Authority (AFSA), the regulatory body that oversees the Astana International Financial Center (AIFC), has issued temporary license approval to Binance, the world’s leading cryptocurrency exchange, the company said in a blog post published Monday The company stated.
This approval in principle requires Binance to complete the application process to obtain a full license that will allow it to operate a digital asset trading facility on the AIFC’s platform and provide digital asset custody services, theannouncementnoted The move comes as a result of a number of recent developments.
The move follows the launch this spring of a pilot project by Kazakhstan’s financial watchdog to establish and develop a cryptocurrency exchange in the country. Subsequently, in June, the Nursultan authorities allowed AIFC-registered platforms to open accounts with local banks.
“Kazakhstan has shown itself to be a pioneer in crypto adoption and regulation in Central Asia.” Changpeng Zhao, founder and CEO of Binance, was quoted as saying.” The crypto entrepreneur added, “This further signifies Binance’s commitment to being a compliance-first exchange and providing products and services in secure and well-regulated environments around the world.
Gleb Kostarev, regional head of Binance, described the development as a “landmark achievement” for Binance in Kazakhstan.” We are grateful for the support and vision of Astana International Financial Center, which granted this in-principle license approval to Binance Kazakhstan,” he stressed.
Kazakhstan has attracted a significant number of crypto mining companies after China cracked down on the industry in May 2021. Critics, however, argue that the business does not create many jobs, exacerbates growing electricity shortages, pays little taxes, and brings little benefit to the country’s economy as it transfers its profits overseas.
As a result, the government has taken steps to shut down illegal mining farms, expand registration requirements for crypto miners, increase surcharges on electricity consumed to mint digital currency, and offer mining companies the option to exchange cryptocurrencies on domestic platforms.
“Large investors seeking new markets need clear, well-governed rules and a high standard of regulatory practice. If regulators meet these requirements, it will create a cooperation based on trust and an ecosystem where players can operate safely and efficiently,” commented Nurkhat Kushimov, AFSA’s Chief Executive Officer.” We believe that Binance’s activities will further develop this vibrant ecosystem of the digital asset industry locally and regionally,” he elaborated.
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