Key takeaways:
- Cryptocurrency exchange Binance announced the opening of a regulated digital asset platform in Kazakhstan.
- For users in Kazakhstan, the new platform will provide a wide range of services geared towards cryptocurrencies and fiat.
In response to escalating regulatory issues in the West, major cryptocurrency exchange Binance announced the opening of a regulated digital asset platform in Kazakhstan.
In the presence of officials from Binance Kazakhstan and the financial sector, the new platform’s launch was announced at a press conference on June 20, 2023.
The cryptocurrency exchange received an in-principle permit to operate in Kazakhstan in August, and the AIFC Financial Services Authority granted it a permanent license in October of the previous year to offer a platform for digital assets and offer custodial services at the country’s AIFC.
For users in Kazakhstan, the new platform will provide a wide range of services geared towards cryptocurrencies and fiat, such as exchange and conversion services, fiat deposits and withdrawals, and custody of cryptocurrency assets.
The Freedom Finance Bank in Kazakhstan will provide banking services, enabling the new customers of the digital asset exchange to add fiat money to their accounts on the platform. Currently, there are two fiat channels for deposits and withdrawals: bank cards and bank transfers through Freedom Finance Bank.
The most recent action for the largest cryptocurrency exchange by trading volume coincides with escalating regulatory issues in the US and numerous European nations. A lawsuit from the Commodity Futures Trading Commission (CFTC) and one from the Securities and Exchange Commission (SEC) of the United States are both pending against Binance.
Along with issues in the United States, the cryptocurrency exchange now sees regulatory opposition from several European nations. According to one report, the exchange has been the subject of an “aggravated money laundering” inquiry in France since the beginning of 2022. After failing to obtain a virtual asset service provider license from Dutch regulators, the exchange was forced to leave the Dutch market.
As of June 19, Binance Markets Limited, a part of Binance with its main office in the United Kingdom, has formally revoked its registration with the Financial Conduct Authority. According to the FCA, the body successfully terminated BML’s license on May 30, 2023, in response to Binance’s request.
Binance is not the only global crypto exchange eyeing the Asian market amid growing regulatory uncertainty in the United States and Europe. Gemini announced its plans to focus on the Asia Pacific region with increased staff at the crypto exchange’s Singapore division and establish an engineering division in India.
