In 2022, Kazakhstan’s law enforcement toward the crypto sector took a huge turn. The former haven for crypto miners became a nightmare as the country imposed heavy sanctions on crypto miners.
However, the latest report reveals that the country has given Binance approval to operate in the region. Binance announced that it had received in-principle permission from the country’s regulator, AFSA (Astana Financial Services Authority).
Binance To Provide Trading And Custodian Services In Kazakhstan
According to reports, Binance has received permission to operate in Kazakhstan. As a result, the company can introduce a trading facility for digital assets and also provide custodian services at the AIFC (Astana International Financial Center).
In June, the region allowed crypto exchange firms to have bank accounts and function legally. Meanwhile, Binance has been expanding into various areas in 2022.
Hence, the recent development is not a surprise to the crypto community. Speaking about the recent approval, Binance CEO Changpeng Zhao stated that:
“Kazakhstan is a great pioneer of crypto regulation and adoption in Central Asia. This reiterates the company’s commitment to regulations. Also, Binance aims to provide crypto products and services that are safe and in a region with proper regulations.”
However, the famous exchange would have to finish the registration process before it can provide crypto services in Kazakhstan. Before now, Nurkhat Kushimov, the leader dedicated to the AFSA, stated that the agency would carry out proper checks before issuing licenses to crypto firms.
Kazakhstan And Binance Sign MOU
Furthermore, Kushimov said the exchange would be under constant supervision. Meanwhile, Zhao has been able to promote Binance to various parts of the globe.
The CEO has visited the presidents and government officials of countries such as Turkey, CAR, and Kazakhstan. It appears the efforts were not wasted after all.
In May, the exchange announced that it had signed an MOU (memorandum of understanding) with Kazakhstan’s Ministry of Digital Development, Aerospace, and Innovations Industry. This partnership would allow Binance to help Kazakhstan formulate a comprehensive crypto regulatory framework.
The recent increased demand for digital currencies might open more doors for more development in the area. However, most exchanges prefer to enter regions with precise regulations.
According to Kushimov, most crypto investors seek markets with precise and proper regulations. Kushimov noted that a regulatory environment would create trust and collaboration between investors and exchange platforms.
He added that Binance would help to develop the country’s vibrant crypto sector regionally and locally.