Top crypto exchange Binance has launched a regulated crypto services platform in Kazakhstan. The platform will offer exchange and conversion as well as crypto custodial services to the people of Kazakhstan. They will also be able to deposit and withdraw fiat currencies using the platform’s fiat infrastructure.
Binance had last year secured a permanent license by Kazakhstan’s AIFC Financial Services Authority (AFSA) in October. The same license gives the company the status of a regulated platform in Kazakhstan. In a press release, Binance said this demonstrates the platform’s “robust compliance and security controls.”
This is coming at a time when Binance is faced with a tough regulatory fight in the US. The top exchange has been in court for weeks now, defending itself from allegations by the SEC bordering on violation of securities laws and “comingling” of customers’ funds.
The SEC has also sued another top exchange, Coinbase which is indigenous to the US on charges similar to those of Binance. However, countries like Kazakhstan have decided to open their doors to Binance and other crypto companies around the world, which is remarkable.
Developing a Regulatory Framework
Apart from establishing the crypto services platform, Binance is also working with regulators in Kazakhstan to develop a robust regulatory framework for the crypto industry in the country.
The launch of the new platform was announced during a press event on June 20, 2023, in the presence of government officials, representatives of Kazakhstan’s banking industry, and Binance Kazakhstan leadership.
Vice Minister of Digital Development, Innovation and Aerospace Industry of Kazakhstan, Asset Turysov said the government is running a special initiative to facilitate the interaction between the AIFC, cryptocurrency exchanges, and second-tier banks.
“Over the past year, regulators in Kazakhstan have taken significant steps towards the development of the cryptocurrency industry. Binance has provided assistance to Kazakhstan in the development of a legislative framework and a general policy for the regulation of crypto assets, as well as in the implementation of various educational initiatives, including for government and law enforcement agencies and regulators,” he said in a statement.
Responding, General Manager of Binance Kazakhstan Zhaslan Madiyev, said Binance is working with five regulatory bodies in the country to come up with a regulatory framework.
“I want to express my deep gratitude to all regulators for their huge contribution to the development of the entire cryptocurrency industry. Thanks to constantly being in touch with Kazakhstan regulators, by the end of the year we plan to significantly expand the product line for users of the local cryptocurrency exchange, as well as to have no less than 100 digital assets approved and available on the platform,” he said.
Kazakhstan Becoming Crypto Hub
Kazakhstan has positioned itself as a budding crypto hub. Apart from welcoming crypto companies such as Binance, the country is also known for its bitcoin mining. Clearly, the presence of Binance will open the door for other companies to troop to the country, making it a real crypto destination.
