Binance, the world’s largest cryptocurrency exchange, has taken a significant step by launching a regulated crypto exchange in Kazakhstan. This move comes at a time when Binance faces mounting regulatory troubles in the West.
The exchange made the announcement in a blog post on Wednesday. There, it highlighted that it obtained a permanent license from Kazakhstan’s AIFC Financial Services Authority (AFSA) last year.
The newly launched platform in Kazakhstan will provide a wide range of services to users. These will include crypto and fiat exchange and conversion services, fiat deposit and withdrawal, as well as custody of crypto assets.
Further, Binance has plans to gradually expand the suite of services and the variety of assets available to Kazakhstani users over time. The launch event for the platform took place on Tuesday. It was attended by government officials, representatives from Kazakhstan’s banking industry, and Binance Kazakhstan leadership.
Favorable Regulatory Environment
Binance’s decision to establish a presence in Kazakhstan aligns with the country’s efforts to create a conducive environment for cryptocurrency exchanges operating within its jurisdiction. The Kazakhstani government initiated a special project aimed at fostering collaboration between AIFC, cryptocurrency exchanges, and second-tier banks.
The project involves 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.
Positive Developments in the Crypto Industry
Asset Turysov, the vice minister of digital development, innovation, and aerospace industry in Kazakhstan, commended the regulators’ proactive approach in supporting the cryptocurrency industry. Turysov emphasized that significant strides have been made over the past year to facilitate its development.
Binance Kazakhstan’s general manager, Zhaslan Madiyev, also expressed the exchange’s commitment to ongoing collaboration with regulators. Madiyev revealed that Binance plans to have more than 100 digital assets approved and available on the platform by the end of this year.
Importantly, Kazakhstan has gained recognition in the crypto industry, particularly due to its expanding role in crypto mining. Following China’s ban on all crypto-related transactions and mining operations in 2021, many foreign mining operators relocated to Kazakhstan.
Moreover, the country’s favorable conditions, including affordable electricity and a supportive stance towards the crypto industry, have attracted numerous mining ventures.
Expansions Beyond US Amidst Regulatory Pressure
Binance is not the only cryptocurrency exchange looking to expand into new regions as a response to the intensifying US crypto crackdown. Gemini, another prominent exchange, plans to enhance its presence in the Asia-Pacific (APAC) region.
This will be done by by bolstering its workforce in Singapore and establishing an engineering division in India. Similarly, Coinbase has extended its services in Singapore, a well-regarded financial hub for cryptocurrencies.
Increased Regulatory Scrutiny in the US
The expansion strategies of these crypto platforms come at a time when regulatory scrutiny in the United States has been mounting. The US Securities and Exchange Commission (SEC) recently filed lawsuits against both Binance and Coinbase.
Binance faced 13 charges, including allegations of operating as an unregistered exchange and offering unregistered securities. Coinbase, on the other hand, was accused of functioning as an exchange, broker, or clearing agency without the required registrations.
Notably, the SEC has taken enforcement action against other crypto exchanges. These include as Kraken and Bittrex, as well as the crypto lending platform Nexo earlier this year.
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