Binance Launches a Regulated Digital Asset Platform in Kazakhstan
Main Takeaways
Having secured a permanent license by Kazakhstan’s AIFC Financial Services Authority (AFSA) last year, Binance is now launching a local digital asset platform in the country.
The new platform will offer Kazakhstani users exchange and conversion services, deposit and withdrawal of fiat, and custody of crypto assets. The suite of services and number of assets available for trading will expand going forward.
Binance continues to productively engage with Kazakhstan’s regulators to advance the country’s crypto industry and contribute to the development of a robust regulatory framework for digital assets.
Binance, the world’s leading blockchain ecosystem and cryptocurrency infrastructure provider, has announced the launch of a local digital asset platform in Kazakhstan. The move follows Binance securing a license from the AIFC Financial Services Authority (AFSA) to manage a digital asset platform and provide custodial services at the Astana International Financial Center (AIFC) in October last year.
The permanent license also gives Binance the status of a regulated platform in Kazakhstan, testifying to its robust compliance and security controls. The new exchange will be authorized to offer exchange and conversion services, deposit and withdrawal of fiat currencies, custody of crypto assets, and exchange trading.
With Regulators on Board
The launch of the new platform was announced at a press event on June 20, 2023, in the presence of government officials, representatives of Kazakhstan’s banking industry, and Binance Kazakhstan leadership.
According to Asset Turysov, Vice Minister of Digital Development, Innovation and Aerospace Industry of Kazakhstan, the government is running a special initiative to facilitate the interaction between the AIFC, cryptocurrency exchanges, and second-tier banks. The National Bank of Kazakhstan, the Financial Monitoring Agency of the Republic of Kazakhstan, as well as the Agency for Regulation and Development of the Financial Market all take part in this project, which has already shown excellent results.
Turysov said: “Over the past year, regulators in Kazakhstan have taken significant steps towards the development of the cryptocurrency industry. Binance has provided assistance to Kazakhstan in the development of a legislative framework and a general policy for the regulation of crypto assets, as well as in the implementation of various educational initiatives, including for government and law enforcement agencies and regulators.”
Zhaslan Madiyev, General Manager of Binance Kazakhstan, noted that Binance is productively working with five regulatory bodies in the country: the AIFC Financial Services Authority (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.
Madiyev added: “I want to express my deep gratitude to all regulators for their huge contribution to the development of the entire cryptocurrency industry. Thanks to constantly being in touch with Kazakhstan regulators, by the end of the year we plan to 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.”
Fiat Infrastructure
Kazakhstan’s Freedom Finance Bank bank has developed a service for the users of the new exchange that allows them to transfer fiat funds to the user account on the platform.
Ablaykhan Ospanov, Managing Director of Bank Freedom Finance Kazakhstan JSC, called the launch of a pilot project for the operation of cryptocurrency exchanges in Kazakhstan a “major boost for the entire industry,” adding: “Many countries can follow Kazakhstan’s example. We see a great potential for the development of the blockchain and cryptocurrency industry, and we are also making great efforts to grow it.”
Binance Kazakhstan users can buy and sell cryptocurrencies using a fiat balance, spot trading, and conversion, with the range of services offered expected to expand. There are two channels available to deposit and withdrawal: bank cards and bank transfer via Freedom Finance Bank. The global www.binance.com platform will continue to be available to users in Kazakhstan.