Licensed since last year, the world’s largest digital asset exchange, Binance, has now launched a trading platform in Kazakhstan. The move comes amid increased pressure from regulators in other jurisdictions, like the U.S., and after Binance’s decision to pull out of several European markets.
Global Leader Binance Sets Up Licensed Exchange in Kazakhstan Amid Euro Exit, U.S. Crackdown
The leading platform for coin trading in the world, Binance, announced the launch of a cryptocurrency exchange in Kazakhstan. The exchange will offer users in the Central Asian nation exchange and conversion services, deposits and withdrawals of fiat money, and custody of crypto assets, a press release detailed on Wednesday.
Binance was licensed to operate in Kazakhstan in October, 2022. The authorization, granted by the Astana Financial Services Authority (AFSA), allows it run a digital asset platform and provide custodial services at the Astana International Financial Center (AIFC), the country’s financial hub. It plans to expand the suite of services and the list of supported assets to at least 100 this year.
Binance Launches a Regulated Digital Asset Platform in Kazakhstan, with local banking support.https://t.co/FMtG2qz3RW
— CZ
Binance (@cz_binance) June 21, 2023
The move comes as the global exchange finds itself under increased regulatory scrutiny elsewhere. Binance is fighting a legal battle with the U.S. Securities and Exchange Commission (SEC) which accuses it of selling assets that the authority deems to be unregistered securities and mishandling customer funds. The crackdown has resulted in a significant drop in the market share of its Binance US platform.
This month, Binance also announced it’s exiting the Dutch market as it was unable to obtain registration as a virtual asset service provider in the Netherlands. Its firm in Cyprus applied to be removed from the country’s register of crypto service providers and Binance’s subsidiary in Britain cancelled its U.K. regulatory authorization. The exchange said it wants to focus on fewer regulated entities in Europe.
The permanent license gave Binance the status of a regulated entity in Kazakhstan. The crypto company has been assisting local authorities in the development of the legal framework for the sector.
Kazakhstan, a mining hotspot since China cracked down on the industry two years ago, enforced a new law this year, designed to regulate its crypto space, including the licensing of AIFC-registered exchanges. Another leading crypto spot exchange, Bybit, was recently licensed, too.
customers in Kazakhstan will be able to use the services of a domestic bank, Freedom Finance Bank, allowing them to transfer fiat funds to their accounts on the new platform through two payment channels — bank cards and regular bank transfers. The global exchange at Binance.com will continue to be available in Kazakhstan as well.
Do you think Binance is shifting focus from developed economies such as the U.S. and the EU to emerging markets in other regions? Tell us in the comments section below.
