Binance, one of the world’s leading cryptocurrency exchanges, has launched a regulated digital asset platform in Kazakhstan. The announcement comes as the exchange seeks to expand its operations amidst mounting regulatory challenges in Western countries. The inauguration of the new platform took place at a press event on June 20, 2023, with representatives from Kazakhstan’s banking industry and Binance Kazakhstan’s leadership in attendance.
Having received an in-principle approval to operate in Kazakhstan in August and subsequently obtaining a permanent license from the AIFC Financial Services Authority at the Astana International Financial Center (AIFC) in October of last year, Binance solidified its position in the country’s growing crypto market.
The newly launched platform aims to provide a comprehensive range of services tailored to Kazakhstani users. This includes exchange and conversion services for both cryptocurrencies and fiat currencies, as well as secure custody solutions for digital assets.
To facilitate seamless fiat transactions, Binance has partnered with Kazakhstan’s Freedom Finance Bank. Through this collaboration, users of the digital asset exchange will be able to easily deposit and withdraw funds in fiat currency. Presently, two fiat channels are available for users to conduct these transactions: bank cards and bank transfers via Freedom Finance Bank.
Binance Explores Asian Markets Amid Regulatory Uncertainty
In the face of increasing regulatory hurdles in the United States and Europe, Binance, the leading cryptocurrency exchange by trading volume, is undergoing significant challenges. The exchange finds itself entangled in a lawsuit with the U.S. Securities and Exchange Commission (SEC) and is also facing legal action from the Commodity Futures Trading Commission (CFTC).
While the situation in the United States remains precarious, Binance is also encountering regulatory resistance from various European countries. Additionally, Binance had to exit the Dutch market after failing to obtain a virtual asset service provider license from regulators in the Netherlands. The exchange has also submitted applications to wind down its services in the United Kingdom and Cyprus.
Binance has maintained that its recent exit from several European countries is driven by a commitment to become compliant with the European Union-approved Markets in Crypto-Assets (MiCA) regulations. However, reports indicate that European regulators are collaborating with the SEC in their investigations into Binance, suggesting a wider scope of regulatory scrutiny.
Highlighting the growing regulatory uncertainty in the United States and Europe, other global cryptocurrency exchanges are now eyeing the Asian market. Gemini, a prominent exchange, recently announced its plans to shift its focus to the Asia-Pacific region. The company intends to bolster its Singapore division by expanding its workforce and establish an engineering division in India. Recognizing Hong Kong’s emergence as a thriving crypto hub, several platforms are considering entering the market. Legislative bodies in the region have even extended invitations to leading exchanges like Coinbase to establish their offices.