Binance Starts a Legally Approved Platform in Kazakhstan

In spite of legal challenges faced in the United States, Binance, a leading international cryptocurrency firm, has recently disclosed its establishment of a locally regulated digital asset platform in Kazakhstan. This development is aimed at providing services to Kazakhstani users for exchanging and converting digital currencies, processing fiat currency deposits and withdrawals, and securing their crypto assets.

The Establishment of Binance in Kazakhstan

Back in October, Binance confirmed that it received the go-ahead to set up a digital asset platform following the acquisition of a license from the AIFC Financial Services Authority (AFSA). This license extends to the company the privilege to provide custodial services within the jurisdiction of the Astana International Financial Center (AIFC).

“Acquiring the permanent license endorses Binance as a regulated platform in Kazakhstan, attesting to its strong compliance and security measures,” Binance stated.

The company asserted that the new local branch is authorized to offer services including exchange and conversion, fiat currency deposit and withdrawal, custody of crypto assets, and trading operations.

The Official Launch of the Platform

The official unveiling of the platform took place at a press conference on June 20, 2023, attended by Kazakhstani government representatives, banking industry stakeholders, and Binance Kazakhstan leadership.

“Over the last year, Kazakhstani regulators have made significant strides toward advancing the cryptocurrency sector,” commented Asset Turysov, the Vice Minister of Digital Development, Innovation, and Aerospace Industry of Kazakhstan.

Turysov added that Binance played a crucial role in assisting the country's regulators in setting up legal frameworks and policies to oversee crypto assets. In addition, he highlighted the collaborative efforts of Kazakhstani authorities with law enforcement agencies in implementing educational initiatives.

Recognition of Regulatory Collaboration

Zhaslan Madiyev, General Manager of Binance Kazakhstan, recognized the fruitful cooperation between Binance and five regulatory bodies in Kazakhstan, including the AFSA, National Bank, Financial Market Regulation and Development Agency, and Financial Monitoring Agency.

Madiyev emphasized the gratitude of the exchange to the regulators for their significant contributions to the development of the country's cryptocurrency industry.

He also extended his thanks to Kazakhstan regulators for their ongoing engagement with Binance, enabling the firm to broaden its product offerings for local users. According to him, the exchange currently supports “at least 100 digital assets, all approved and accessible on the platform.”

Legal Obstacles Faced by Binance

On June 5, 2023, both Binance and its CEO, Changpeng Zhao, were charged by the US Securities and Exchange Commission (US SEC) for alleged violations of securities laws. The charges stem from allegations of offering and selling digital asset securities to US residents without proper SEC registration.

According to the SEC, Binance operated as an unregistered securities exchange and failed to disclose essential information to investors. Consequently, a dozen coins and tokens, including Solanam, Cardano, Filecoin, Cosmos, Algorand, Binance Coin, Binance USD, Polygon, The Sandbox, Decentraland, Axie Infinity Shards, and COTI, were identified by the SEC as securities.

Binance's Global Presence Amid Challenges

The firm has faced regulatory probes in other nations as well; Binance withdrew from Canada in May following the roll-out of new regulatory guidelines. Furthermore, its derivatives license in Australia was revoked amidst a regulatory investigation.

However, the company continues to operate under licenses in multiple jurisdictions, such as Thailand and Italy.

In the Philippines, the latest reports suggest that it is attempting to secure a cryptocurrency license and an e-money license. This week, however, Infrawatch, a think tank, has renewed its calls for local regulators to suspend Binance's operations in the country.

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