The biggest digital asset exchange in the world, Binance, which has been authorized since last year, has now introduced a trading platform in Kazakhstan. The action was taken in response to Binance’s decision to leave numerous European countries, as well as heightened pressure from regulators in other nations, such as the U.S.
Binance, the top cryptocurrency trading platform in the world, recently announced the opening of a cryptocurrency exchange in Kazakhstan. According to a news release issued on Wednesday, the exchange would provide users in the Central Asian country with exchange and conversion services, deposits and withdrawals of fiat currency, and custody of crypto assets.
In October 2022, Binance received a license to conduct business in Kazakhstan. The Astana Financial Services Authority (AFSA) gave it permission to operate a platform for digital assets and offer custodial services in the Astana International Financial Center (AIFC), the nation’s financial center. This year, it intends to increase the number of supported assets and services to at least 100.
The action is being taken as the global exchange comes under heightened regulatory scrutiny in other places. The U.S. Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, alleging that it mishandled customer cash and sold assets that the agency considered to be unregistered securities. The crackdown has caused the market share of its Binance US platform to decline noticeably.
Binance also stated this month that it is leaving the Dutch market because it was unable to register as a provider of virtual asset services there. Its Cyprus-based company filed a request to be struck from the list of cryptocurrency service providers in the nation, while Binance’s British affiliate revoked its U.K. regulatory authorization. The exchange stated that it intends to concentrate on fewer European regulated firms.
Binance now has the status of a regulated entity in Kazakhstan thanks to the permanent license. The cryptocurrency company has been supporting regional authorities in creating the industry’s legal structure.
Since China’s crackdown on the sector two years ago, Kazakhstan has become a mining hotspot. This year, Kazakhstan implemented a new law to regulate its cryptocurrency market, including the licensing of exchanges that are registered with the AIFC. Bybit, a well-known cryptocurrency spot exchange, also received a license lately.
Customers of Binance in Kazakhstan will have access to the services of a local bank, Freedom Finance Bank, which will enable them to deposit fiat money into their accounts on the new platform using both bank cards and traditional bank transfers. Kazakhstan will continue to have access to Binance.com’s worldwide exchange.