In a significant move toward full regulatory licensing, Binance, the global cryptocurrency exchange, has received formal consent from the Astana Financial Services Authority (AFSA) to operate as a regulated trading platform in Kazakhstan. This development marks a pivotal step for Binance as it seeks to become the first fully licensed crypto exchange in the country.
On September 6, Binance announced the milestone, highlighting that the approval for its local branch, Binance Kazakhstan, positions the company to potentially achieve full licensing soon. Binance noted that to reach this stage, its local entity underwent rigorous external financial audits, secured ISO certifications for its IT systems, and complied with a series of internal and external audits as well as regulatory inspections.
Once fully licensed, Binance Kazakhstan will be authorized to operate a virtual assets trading facility, manage principal investments, and provide cryptocurrency custody services, according to the company’s official statement.
Kazakhstan: A Growing Hub for Crypto Amid Strict Regulations
Kazakhstan has emerged as a key market for cryptocurrency businesses, especially following China’s crackdown on crypto mining in 2021, which prompted many miners and digital asset firms to relocate to the region. However, the country maintains stringent regulations governing cryptocurrency operations, making it difficult for many foreign exchanges to enter the market.
While Binance has made significant strides in Kazakhstan, other global exchanges have faced hurdles. In contrast to Binance’s success, U.S.-based crypto exchange Coinbase was denied permission to operate in Kazakhstan in December 2023. The Ministry of Digital Development cited violations of the country’s digital asset laws, specifically referencing Coinbase’s trading of uninsured cryptocurrencies, which breached local regulations. This highlights the challenges international exchanges face when navigating Kazakhstan’s evolving regulatory environment.
With Binance edging closer to becoming fully licensed in Kazakhstan, the company solidifies its presence in a market that is increasingly critical to the global cryptocurrency ecosystem.
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