The Astana Financial Services Authority (AFSA) has granted in-principle authorization to the largest cryptocurrency exchange, Binance, to run a digital asset trading facility and offer custody services in Kazakhstan.
Authorized by Local Regulators
In-principle authorization to crypto exchange was granted by AFSA. The organization is an independent regulator of the Astana International Financial Center, monitoring a wide spectrum of digital asset-related activities in Kazakhstan.
“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 the digital asset industry locally and regionally,” said Nurkhat Kushimov, Chief Executive Officer of AFSA in the official statement.
Kazakhstan became a popular location for crypto miners due to its comparatively inexpensive electricity following China’s prohibition on the industry in 2021.
“Kazakhstan has shown itself to be a pioneer in Central Asian crypto adoption and regulation,” Changpeng Zhao, the founder and CEO of Binance, said in a statement. Zhao assured that Binance is committed to being a compliance-first exchange operating across the globe.
Binance Assisting Countries’ Crypto Market Growth
In May, Binance signed a memorandum of understanding with the Kazakhstan government to assist the country in developing the digital assets market.
With this action, Binance will offer guidance on creating the legal system and regulatory framework for digital assets in the Republic of Kazakhstan.
The Republic of Kazakhstan’s Ministry of Digital Development, Innovations, and Aerospace Industry and Binance will work together to find ways to integrate banking infrastructure into the cryptocurrency market and to promote the creation and use of distributed ledger technology as part of their cooperation agreement.
On the Flipside
- Before beginning operations in the Astana International Financial Centre (AIFC), a financial hub situated in the capital of Kazakhstan, Nur-Sultan, Binance must still finish a thorough application process.
Why You Should Care
- Binance is one of the largest crypto exchange platforms with around 28.6M active users.
- According to the Kazakhstan Data Center Industry and Blockchain Association, cryptocurrency mining could generate up to $1.5 billion in revenue for the nation over the course of five years. Kazakhstan is the third-largest BTC mining location in the world with a hash rate share amounting to 13%.
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