Cryptocurrency exchange Binance will assist the government of Kazakhstan in efforts to regulate the country’s crypto space. Global coin trading platforms will help integrate the national banking system and the growing digital asset market.
Kazakhstan and Binance to Develop Its Crypto Sector
Binance, the world’s leading crypto exchange by trading volume, has signed a memorandum of understanding with Kazakhstan’s Ministry of Digital Development, Innovation and Aerospace Industry. They will cooperate in the crypto sector.
According to Forklog’s crypto news outlet, Changpeng Zhao from Binance signed the memorandum while he was visiting the Central Asian country. Zhao met high-ranking Kazakhstani officials including President Kassym Jomart Tkayev, and Bagdat Musin the director of the digital development ministry.
Binance, according to reports, will be advising the country regarding the regulation and use of cryptocurrencies. The Ministry of Digital Transformation and the exchange will also seek a solution allowing the integration of Kazakhstan’s banking infrastructure with the crypto market, the document details.
Binance and the Ministry have also agreed to collaborate in supporting the Astana International Financial Centre(AIFC), which is the financial centre in Nur-Sultan. The two sides have discussed the possibility of creating a blockchain-focused venture fund and an academy “to help local talent from the Astana Hub reach the global level,” Musin said.
Kazakhstan’s National Association of Blockchain and Data Center Industry wants AIFC become a platform for regulation cryptocurrency exchanges. Last summer, the country’s National Association of Blockchain and Data Center Industry unveiled that domestic commercial banks will be permitted to open accounts for crypto trading platforms registered at the hub as part of a pilot project.
China finally cracked down on the crypto-mining industry in Kazakhstan last spring. But, due to an increasing power shortage, it has become a significant mining hotspot. The government has proposed to implement differentiated tax rates based on how much electrical energy is consumed. This will help address the problem. On the first reading of the Tax Code, which was approved in Mazhilis this week, it was passed by that lower house.
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