Binance, a crypto exchange that offers trading and custody for digital assets in Kazakhstan has received preliminary approval. While the application process is still ongoing, Binance has been recognized as an important milestone in the Central Asian country’s efforts to regulate cryptocurrency trading.
Kazakhstan Authorities Give Binance Regulatory Approval
Kazakhstan’s Astana Financial Services Authority (AFSA), the regulatory body that oversees the Astana International Financial Center (AIFC), has issued a temporary license approval to the world’s leading cryptocurrency exchange, Binance, the company unveiled in a blog post published on Monday.
The in-principle approval requires Binance to complete the application process to get the full license, which will allow it to run a digital asset trading facility and provide digital asset custody services on the AIFC’s platform, the announcement noted.
The move comes after this spring, Kazakhstan’s financial watchdog launched a pilot project to establish and develop cryptocurrency exchanges in the country. In June, authorities in Nur-Sultan granted accounts to AIFC-registered platforms with local banks.
“Kazakhstan has shown itself to be a pioneer in Central Asian crypto adoption and regulation,” Binance founder and CEO Changpeng Zhao has been quoted as saying. “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,” the crypto entrepreneur added.
Gleb Kostarev, regional head at Binance, described the development as a “landmark achievement” for Binance in Kazakhstan. “We are grateful to the Astana International Financial Center for their support and vision in granting Binance Kazakhstan this in-principle license approval,” he emphasized.
After China’s crackdown on crypto mining in May 2021, Kazakhstan was able to attract a large number of cryptocurrency mining companies. However, critics have insisted that the business brings little benefit to the country’s economy as it doesn’t create many jobs, exacerbates a growing power deficit, pays little tax, and transfers its profits abroad.
The government took steps to crack down on illegal crypto mining, to increase registration requirements, to raise a surcharge to pay for electricity used to create digital currency, and to allow mining companies to trade their cryptocurrency on domestic platforms.
“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,” commented Nurkhat Kushimov, the chief executive of AFSA. “We believe that Binance’s work will further develop this vibrant ecosystem of the digital asset industry locally and regionally,” he elaborated.
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