Binance Obtains In-principle Approval to Operate in Kazakhstan
Cryptocurrency
exchange Binance has been granted preliminary approval to offer trading and
custody services for digital assets in Kazakhstan. The exchange is yet to
complete the full application process, but the development has already been
hailed as a landmark achievement for the company in the Central Asian nation,
which has recently taken steps to regulate coin trading.
Binance Receives AFSA Approval
Kazakhstan’s
Astana Financial Services Authority (AFSA), the regulatory body that oversees
the Astana International Financial Center (AIFC), has issued a temporary
approval to the world’s leading cryptocurrency exchange, Binance, the company
revealed in a blog post published on Monday.
The
in-principle approval mandates Binance to complete the application process to
obtain the full license to run a digital asset trading facility and digital
asset custody services on the AIFC’s platform,
the announcement noted.
The move
follows after Kazakhstan’s financial watchdog launched a pilot project to
establish and develop cryptocurrency exchanges in the country. The authorities
in Nur-Sultan allowed AIFC-registered platforms to open accounts with local
banks in June 2022.
"Kazakhstan
has shown itself to be a pioneer in Central Asian crypto adoption and
regulation," Binance Founder and CEO Changpeng Zhao has been quoted. "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
said.
After China
cracked down on the industry in May 2021, Kazakhstan attracted a significant
number of crypto mining enterprises. However, critics have insisted that the
business brings little benefit to the country’s economy as it does not help in
job creation, aggravates a growing power deficit, pays little tax, and
transfers its profits abroad.
The
government has taken steps to shut down illegal mining
farms; expand registration requirements for crypto miners; increase a surcharge for the electricity consumed to
mint digital currencies, and provide options for mining companies to exchange
their cryptocurrencies 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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