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Binance expanded its operations into the Central Asian market in 2023 when it announced the launch of its regional division Binance Kazakhstan.
Binance, a leading global cryptocurrency exchange, has officially received regulatory consent from Kazakhstan’s financial authorities, bringing it closer to securing full licensing within the country.
On Friday, September 6, Binance announced that its regional branch, Binance Kazakhstan, was approved by the Astana Financial Services Authority (AFSA). With this, the exchange became the first digital asset trading platform in the Central Asian nation to obtain such recognition ahead of full licensure.
Moving Toward Full Licensing
Although Binance Kazakhstan has not yet achieved full licensing under the country’s comprehensive regulatory framework for crypto service providers, this consent demonstrates that the exchange has met the initial regulatory standards and requirements.
The company said the recent consent from the authorities puts the local exchange one step closer to becoming licensed and emerge as the “first fully regulated Digital Asset Trading Facility (DATF)” in the country.
According to the announcement, Binance Kazakhstan has already completed all the steps required for the licensure, including getting audited by internal and external auditors, obtaining ISO certifications for the organization’s IT systems, and an inspection by the AFSA to examine the company’s security measures.
Once the license is granted, the exchange will be allowed to establish a virtual asset trading platform, offering a series of crypto-related services to users in the region. The platform will also be able to serve as a custodian.
“We look forward to getting the full license, continuing to serve our users in Kazakhstan, and contributing to the growth of the local digital-asset ecosystem,” said Vishal Sacheendran, Binance’s head of regional markets.
Binance’s Expansion into Kazakhstan
Binance expanded its operations into the Central Asian market in 2023 when it announced the launch of its regional division Binance Kazakhstan. The move followed the exchange’s license acquisition in September 2022, allowing it to operate a digital asset platform and offer custody services within the Astana International Financial Centre (AIFC).
Since securing the license, Binance has cultivated a strong relationship with Kazakhstan. In October 2022, Binance’s founder Changpeng Zhao (CZ) revealed that Kazakhstan’s National Bank had selected the BNB Chain, a blockchain closely linked to Binance and known for supporting BEP20 smart contracts, for its central bank digital currency (CBDC).
The Digital Tenge, Kazakhstan’s CBDC, completed its initial pilot in 2021 and has been in its second beta testing phase with selected merchants since 2022. Following the testing phase, the Digital Tenge is expected to be launched on the BNB Chain.
That same year, Binance also signed a memorandum of understanding (MoU) with the Kazakhstan government to promote crypto literacy and assist in establishing a comprehensive regulatory framework.
Additionally, the partnership will enable Kazakhstan to explore other opportunities within the crypto space, including the creation of a blockchain-based venture capital fund to foster local talent through the Astana Hub.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Chimamanda is a crypto enthusiast and experienced writer focusing on the dynamic world of cryptocurrencies. She joined the industry in 2019 and has since developed an interest in the emerging economy. She combines her passion for blockchain technology with her love for travel and food, bringing a fresh and engaging perspective to her work.
