Binance Granted In-Principle Approval to Operate in Kazakhstan

Key Takeaways:

  • Binance will soon be able to provide its services as a Digital Asset Trading Facility in Kazakhstan.
  • AFSA is the first regulator in Kazakhstan to grant in-principle approval to a Binance entity.

The world’s leading exchange Binance is slowly expanding its presence one country at a time. On August 15, Binance announced that it obtained an In-Principle Approval from the Astana Financial Services Authority (AFSA) to operate as a Digital Asset Trading Facility and provide Custody in the Astana International Financial Centre (AIFC).

Per the official announcement, after completing the full application process, Binance will now be able to provide its services as a Digital Asset Trading Facility in Kazakhstan. This move by AFSA makes it the first regulator in Kazakhstan to grant in-principle approval to a Binance entity.

AFSA is an independent regulator of the AIFC-Astana International Financial Centre that regulates activities relating to digital assets in the country.

Commenting on the latest development, Binance CEO CZ-Changpeng Zhao (CZ) said the approval indicates the exchange’s commitment to being a compliance-first exchange and providing products and services in a safe and well-regulated environment across the globe.

Gleb Kostarev, who holds the Regional Head of Asia position 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.”

In May, Binance CEO Changpeng Zhao visited Kazakhstan and met with President of Kazakhstan Kassym-Zhomart Tokayev. Last month, Binance signed an MoU with the Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan to develop a virtual asset market in the country.

Binance is now advising Ministry on developing the legislative framework and regulatory policy for crypto-assets in the Republic of Kazakhstan. 

The electricity consumption by the mining sector has been increasing in Kazakhstan ever since it became a hotspot for mining activities after the crypto ban in China in September 2021. Kazakhstan is also now one of the biggest cryptocurrency mining countries in the World. Reportedly, Kazakhstan received $1.5 million from the crypto mining industry in the first three months of 2022.

With the latest move, it can be asserted that Binance’s aggressive expansion plan in Asia, where it’s trying to capitalize on booming trading activity to establish leadership in the region, and build influence in local markets, is showing no sign of stopping.

Saniya Raahath
Saniya Raahath

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