Binance, the controversial crypto exchange, has announced the launch of a regulated digital asset platform in Kazakhstan. The exchange has secured licensing from Kazakhstan’s AIFC Financial Services Authority (AFSA) to manage the platform and provide custodial services at the Astana International Finance Center (AIFC) from October 2022.
The new platform will offer Kazakhstani users exchange and conversion services, deposit and withdrawal of fiat, and custody of crypto assets. The platform is working with five regulatory bodies in the country, including AFSA, the Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan, the National Bank of the Republic of Kazakhstan, the Financial Market Regulation and Development Agency, and the Financial Monitoring Agency. The cooperation with the authorities will help the exchange “significantly expand the product line for users of the local cryptocurrency exchange, as well as to have no less than 100 digital assets approved and available on the platform,” said Binance Kazakhstan’s general manager, Zhaslan Madiyev.
Kazakhstan’s Unique Initiative
Kazakhstan’s Vice Minister of Digital Development, Innovation, and Aerospace Industry, Asset Turysov, said that the government’s unique initiative, which involved interactions between several agencies, cryptocurrency exchanges, and second-tier banks, had shown “excellent results.” Kazakhstan’s Freedom Finance Bank developed a service allowing its users to transfer fiat funds directly to their account on the platform.
Binance faces regulatory issues across multiple jurisdictions, including the United States, where it is charged with violating federal securities law. Over the past week, Binance has exited three European countries, including the United Kingdom, Netherlands, and Cyprus. The exchange attributed its decision to its efforts to focus on larger markets in other European countries like France. Its sub-regional manager, Ilir Laro, added that the firm has five regulated entities in France, Italy, Spain, Poland, and Sweden.