Binance, the world’s largest cryptocurrency exchange, has secured an in-principle regulatory approval from AFSA to operate in Kazakhstan.
Today, the world’s largest cryptocurrency exchange, Binance, announced that it had obtained in-principle regulatory approval from the Astana Financial Services Authority (AFSA) to operate a Digital Asset Trading Facility and provide custody in the Astana International Financial Center (AIFC). This step from the AFSA makes it the first regulator in Kazakhstan to offer an in-principle approval to a Binance entity.
Binance’s Expansion Mode On
This year, the leading cryptocurrency exchange Binance is in full expansion mode. The crypto exchange giant has not only obtained licenses in Abu Dhabi, Bahrain, and Dubai but also in France, with an eye on Germany. The progress of obtaining licenses and expanding its crypto services worldwide in some key jurisdictions has delivered strong Binance Coin (BNB) price support.
However, the in-principle approval still requires Binance to complete the entire application process in order to start providing its services as an operator of a Digital Asset Trading Facility and Provider of Custody in the Astana International Financial Center Kazakhstan. The procedure is expected to be completed in due course.
The founder and CEO of Binance, Changpeng Zhao (CZ), said, “Kazakhstan has shown itself to be a pioneer in Central Asia crypto adoption and regulation.” The CEO also stated, “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.”
A Landmark Achievement For Binance X Kazakhstan
Gleb Kostarev, the regional Head of Asia at Binance, said, “This is a landmark achievement for Binance in Kazakhstan. We are grateful to the Astana International Financial Centre for their support and vision in granting Binance Kazakhstan this in-principle license approval.”
On 25 May, Binance announced that it signed a Memorandum of Undertaking (MoU) with the Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan. According to the MoU, it provided Binance with an advisory role in developing a legislative and regulatory framework for crypto assets in Kazakhstan. The announcement further stated that the Ministry of Digital Development, Innovations, and Aerospace Industry and Binance would explore opportunities to integrate banking infrastructure with crypto assets and facilitate economic development in Kazakhstan.
Regarding in-principle approval, Nurkhat Kushimov, Chief Executive Officer of AFSA, said, “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. We believe that Binance’s work will further develop this vibrant ecosystem of digital assets industry locally and regionally.”
Verdict
The crypto market doom and gloom and the crash of TerraUSD (UST) and Terra LUNA have not slowed Binance down. Even regulatory scrutiny in several jurisdictions, including the UK and the US, has failed to prevent Binance from expanding globally.
The growing crypto adoption across the world and Binance’s expansion will ultimately have a positive impact. Furthermore, Binance’s growth in Kazakhstan will eventually benefit the country’s crypto enthusiasts as Kazakhstan is one of the significant leaders in the crypto mining industry, and it was one of the first to introduce the legalization of mining.
