Crypto exchange Binance has received preliminary approval to offer digital asset trading and custody services in Kazakhstan. The exchange has yet to complete the full application process, but the development has already been hailed as a historic achievement for the company in the Central Asian nation which has only recently taken steps to regulate trading in rooms.
Binance Receives Regulatory Approval from Kazakhstan Authorities
The Astana Financial Services Authority (AFSA) of Kazakhstan, 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 disclosed in a blog post published on Monday.
The tentative approval requires Binance to complete the application process to obtain the full license, which will allow it to operate a digital asset trading facility and provide digital asset custodial services on the platform. the AIFC, says the announcement.
The move comes after this spring, Kazakhstan’s financial watchdog launched a pilot project to establish and grow cryptocurrency exchanges in the country. Then, in June, authorities in Nur-Sultan allowed AIFC-registered platforms to open accounts with local banks.
“Kazakhstan has proven to be a pioneer in crypto adoption and regulation in Central Asia,” said Binance Founder and CEO Changpeng Zhao. “It further signifies Binance’s commitment to being a compliance-focused exchange and providing products and services in a safe and well-regulated environment across the globe,” the crypto entrepreneur added.
Gleb Kostarev, regional head of Binance, described the development as a “historic achievement” for Binance in Kazakhstan. “We are grateful to Astana International Financial Center for their support and vision in granting Binance Kazakhstan this license approval in principle,” he said.
Kazakhstan has attracted a significant number of crypto mining companies after China cracked down on the industry in May 2021. However, critics have insisted that the company brings little benefit to the economy of the country because it does not create many jobs, exacerbates a growing energy deficit, pays little tax and transfers its profits abroad.
As a result, the government has taken steps to shut down illegal mining farms, expand registration requirements for crypto miners, increase a surcharge for electricity consumed to mint digital currencies, and provide mining companies with the ability to exchange their cryptocurrencies on national platforms.
“Major investors seeking new markets need clear, well-managed rules and high standards of regulatory practice. When a regulator meets these requirements, it creates trust-based collaboration and an ecosystem where players can work safely and efficiently,” commented Nurkhat Kushimov, Director General of AFSA. “We believe that Binance’s work will further develop this vibrant digital asset industry ecosystem locally and regionally,” he explained.
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