Binance expands to Kazakhstan amid global regulatory hurdles
Binance stated that its Kazakhstani users can transfer fiat directly to their account on the platform.
Embattled crypto exchange Binance has launched a regulated digital asset platform in Kazakhstan amid its regulatory issues across multiple jurisdictions.
In a June 21 statement, Binance said it had secured licensing from Kazakhstan’s AIFC Financial Services Authority (AFSA) to manage a digital asset platform and provide custodial services at the Astana International Finance Center (AIFC) in October 2022.
“The new platform will offer Kazakhstani users exchange and conversion services, deposit and withdrawal of fiat, and custody of crypto assets.”
The exchange further revealed that Kazakhstan’s Freedom Finance Bank developed a service allowing its users to transfer fiat funds directly to their account on the platform.
Working with 5 regulatory bodies
The general manager of Binance Kazakhstan, Zhaslan Madiyev, revealed that the platform was working with five regulatory bodies in the country, including AFSA, the Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan, the National Bank of the Republic of Kazakhstan, the Financial Market Regulation and Development Agency, and the Financial Monitoring Agency.
Madiyev noted that this cooperation with the authorities would help the exchange “significantly expand the product line for users of the local cryptocurrency exchange, as well as to have no less than 100 digital assets approved and available on the platform.”
Meanwhile, Kazakshstan’s Vice Minister of Digital Development, Innovation, and Aerospace Industry, Asset Turysov, stated that the government’s unique initiative, which involved interactions between several agencies, cryptocurrency exchanges, and second-tier banks, has shown “excellent results.”
Binance faces various regulatory issues across multiple jurisdictions, including the United States, where it is charged with violating federal securities law.
The exchange attributed its decision to its efforts to focus on larger markets in other European countries like France. Its sub-regional manager, Ilir Laro, added that the firm has five regulated entities in France, Italy, Spain, Poland, and Sweden.