Crypto exchange Binance has achieved a significant milestone by securing formal consent for full regulatory compliance from the Astana Financial Services Authority (AFSA) in Kazakhstan.
Full Regulatory Approval
In a statement dated September 6, Binance announced that its Kazakh subsidiary, Binance Kazakhstan, received approval for a full regulatory license. The company had to undergo a series of external financial audits, obtain ISO certifications for its IT systems, and pass numerous internal and external audits and regulatory inspections.
Impact on Kazakhstan Market
Once the full license is granted, Binance Kazakhstan will be authorized to operate a virtual asset trading facility, handle principal investments, and offer custody services for cryptocurrencies. Kazakhstan is becoming an increasingly attractive market for cryptocurrency companies, particularly after China’s crackdown on crypto mining in 2021, which drove miners and digital asset firms to the region.
Comparison with Other Exchanges
In contrast to Binance’s successful path, U.S.-based crypto exchange Coinbase was blocked in Kazakhstan in December 2023 due to violations of the country’s digital asset laws. The Ministry of Digital Development cited the trading of uninsured cryptocurrencies on Coinbase’s platform as a breach of Clause 5, Article 11 of Kazakhstan’s Law on Digital Assets.
Thus, Binance is making significant strides in integrating into the Kazakhstan market and strengthening its position as a leading crypto exchange in the region. While other exchanges face challenges, Binance continues to expand its presence and ensure compliance with local regulatory requirements.
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