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Binance clinches approval in principle to operate in Kazakhstan

Binance
TL;DR Breakdown
  • Binance reaches a new milestone after being granted an operating license in Kazahkstan
  • Binance must complete official verifications in Kazakhstan before starting operations
  • Kazakhstan continues to embrace and explore the possibilities of crypto

Binance, the world’s largest cryptocurrency exchange, has received another regulatory OK from Astana Financial Services Authority (AFSA). For years, Kazakhstan has been a critical location for the crypto industry because it is a center for miners. The crypto exchange still has to go through the whole application procedure in Kazakhstan before it can begin official operations,

Binance has collaborated with Kazakhstan, which is known for crypto mining, to assist the country in developing laws for digital assets while it considers boosting its crypto sector. In May, the crypto exchange said it would aid in the development of digital asset legislation in Kazakhstan.

The move from the Astana Financial Services Authority (AFSA) makes it the first regulator in Kazakhstan to grant an in-principle approval to a Binance entity. The in-principle approval from AFSA still requires Binance to complete the full application process, which is expected to be completed in due course. Then Binance will be able to provide its services as an operator of a Digital Asset Trading Facility and Provider of Custody in the Astana International Financial Centre.

Binance

Binance strengthens operations in Kazakhstan

This is the organization’s first regulatory approval in the country. Nonetheless, the global crypto exchange must still fully verify its customers, which it expects to do “in due course.” After that’s completed, the exchange can operate in Kazahstan as a Digital Asset Trading Facility and custodial provider.

Binance’s relentless push into hostile jurisdictions last year prompted new compliance personnel to be put in place. This resulted in an aggressive growth spurt in several previously unfriendly countries.

The company has beefed up its compliance team and received permits and provisional approvals from other countries and jurisdictions, including France, Dubai, and Spain, after riling regulators in the United Kingdom, Japan, Uzbekistan, and Israel last year.

This is a major step forward for Binance in Kazakhstan, Gleb Kostarev, Asia Regional Head at Binance, added. The crypto entity thanks the Astana International Financial Centre for its support and vision in giving it this fundamental license approval.

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.

Changpeng Zhao (CZ)

The Astana International Financial Centre Authority, also known as the FAFSA, is a unique organization regulating digital asset-related activities in Kazakhstan and the entire CIS region. The AIFC’s robust regulatory framework for FinTech has aided it in becoming the region’s most prominent platform for the development of services that use digital assets.

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.

Nurkhat Kushimov, Chief Executive Officer of AFSA

Kazakhstan embraces the crypto industry

The Republic of Kazakhstan has been attempting to embrace cryptocurrency for a while now. In May 2022, the Ministry of Digital Development, Innovations, and Aerospace Industry of The Republic of Kazakhstan signed an MOU with the worldwide crypto exchange. The countries expressed mutual interest in developing the virtual asset market in the country in the agreement.

The leading crypto exchange will now assist the Republic of Kazakhstan to develop legislation and policy for crypto-assets. The Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan signed plans to integrate banking infrastructure into the crypto market and promote decentralized ledger technology development and implementation.

The country’s Ministry of Education and the Binance Foundation have formed an initiative to establish Astana Hub. This blockchain center will serve as a regional node for local and international talent.

Florence Muchai

Florence Muchai

Florence is a crypto enthusiast and writer who loves to travel. As a digital nomad, she explores the transformative power of blockchain technology. Her writing reflects the limitless possibilities for humanity to connect and grow.

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