Binance Opens Regulated Crypto Platform in Kazakhstan Amid Regulatory Challenges in the West
Source: iStock/freedarst
Binance has launched a regulated cryptocurrency exchange in Kazakhstan amid growing regulatory troubles in the West.
In a Wednesday blog post, the world's largest crypto exchange said it is launching the new platform after it secured a permanent license from Kazakhstans AIFC Financial Services Authority (AFSA) last year.
The new platform will offer Kazakhstani users a slew of crypto and fiat-focused services, including exchange and conversion services, deposit and withdrawal of fiat, and custody of crypto assets.
Binance said the suite of services and the number of assets offered to Kazakhstani users will expand over time.
The exchange detailed that the new platform was launched on Tuesday in the presence of government officials, representatives of Kazakhstans banking industry, and Binance Kazakhstan leadership.
The launch of Binance Kazakhstan comes as the country has taken steps to create a favorable environment for crypto exchanges operating in the jurisdiction.
According to Asset Turysov, the vice minister of digital development, innovation, and aerospace industry in Kazakhstan, the government has launched a special initiative to enhance the interaction between AIFC, cryptocurrency exchanges, and second-tier banks.
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 are all part of the project.
“Over the past year, regulators in Kazakhstan have taken significant steps towards the development of the cryptocurrency industry,” Turysov said in a comment.
Zhaslan Madiyev, the general manager of Binance Kazakhstan, said the exchange will continue to work with regulators, adding that it plans to have more than 100 digital assets approved and available on the platform by the end of the year.
Kazakhstan has become a popular name in the crypto industry over the past couple of years, specifically for its growing role in crypto mining.
In 2021, a wave of foreign mining operators relocated to the country following China's ban on all crypto-related transactions as well as crypto mining operations.
More Crypto Firms Plan Expansions as US Crypto Crackdown Intensifies
Aside from Binance, a number of other crypto exchanges have also announced plans to expand into other regions amid US crypto crackdown.
For one, crypto exchange Gemini aims to expand into the Asia-Pacific (APAC) region by increasing its headcount in Singapore and establishing an engineering division in India.
Likewise, Coinbase has expanded the services it provides in Singapore, one of the more crypto-friendly financial hubs.
The expansion plans come as crypto platforms have been under increasing regulatory scrutiny in the US.
Earlier this month, the SEC sued both Binance, the world's largest cryptocurrency exchange, and Coinbase, the largest US-based cryptocurrency.
The commission filed 13 charges against Binance and its US affiliates, ranging from allegedly operating as an unregistered exchange to offering unregistered securities.
The regulator also levied similar charges against Coinbase, claiming that it operated as an exchange, broker, or clearing agency without the required registrations.
Furthermore, the SEC has taken enforcement action against crypto exchanges Kraken and Bittrex, as well as crypto lending platform Nexo so far this year.
