Binance, the world’s largest cryptocurrency exchange, faces intense regulatory scrutiny in the U.S. and Europe. The exchange has recently withdrawn from the Netherlands and Cyprus. However, on June 20, 2023, Binance announced its plans to launch a local digital asset platform in Kazakhstan after it obtained a license from the AIFC Financial Services Authority (AFSA) in October 2022, allowing them to operate a digital asset platform and offer custodial services.
With this permanent license, Binance becomes a regulated platform in Kazakhstan, authorized to provide various services, including exchange and conversion services, fiat currency deposits and withdrawals, custody of crypto assets, and exchange trading.
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.”
Asset Turysov, Vice Minister of Digital Development, Innovation and Aerospace Industry of Kazakhstan
Through a special initiative, the government of Kazakhstan aims to facilitate collaboration between the AIFC, cryptocurrency exchanges, and second-tier banks. This initiative involves the participation of the National Bank of Kazakhstan, the Financial Monitoring Agency of the Republic of Kazakhstan, and the Agency for Regulation and Development of the Financial Market, which has already yielded positive results.
Zhaslan Madiyev, General Manager of Binance Kazakhstan, emphasized the productive collaboration between Binance and five regulatory bodies in the country. Additionally, Kazakhstan’s Freedom Finance Bank has developed a service that allows users of the new exchange to transfer fiat funds to their platform accounts.
Binance Kazakhstan users can engage in fiat-to-crypto transactions, spot trading, and conversion using a fiat balance, with an expected expansion of services in the future. Deposits and withdrawals can be made through bank cards or transfers via Freedom Finance Bank. It’s worth noting that the global platform, www.binance.com, will continue to be accessible to users in Kazakhstan.
