World-leading blockchain ecosystem and cryptocurrency infrastructure provider Binance has announced the launch of a local digital asset platform in Kazakhstan. This move follows Binance obtaining a license last October from the AIFC Financial Services Authority (AFSA) to manage a digital asset platform and provide custodial services within the Astana International Financial Centre (AIFC).
This permanent license also bestows upon Binance the status of a regulated platform in Kazakhstan, demonstrating robust compliance and security controls. The new exchange will have the authority to provide exchange and conversion services, deposit and withdrawal of currencies, and custody and spot trading of crypto assets. The launch of the new platform was announced at a press event held on June 20, 2023, attended by government officials, representatives of the banking sector in Kazakhstan, and the leadership of Binance Kazakhstan.
According to Asset Turysov, Deputy Minister of Digital Development, Innovation and Aerospace Industry of Kazakhstan, the government is conducting a special initiative to facilitate interaction between AIFC, cryptocurrency exchanges, and second-tier banks. The National Bank of Kazakhstan, the Financial Monitoring Agency of the Republic of Kazakhstan, and the Agency for Regulation and Development of the Financial Market are already part of this project that has been delivering excellent results.
Over the past year, regulators in Kazakhstan have taken significant steps toward the development of the cryptocurrency industry. Binance has helped Kazakhstan develop a legal framework for the regulation of crypto assets and a general policy, including various educational initiatives involving the government, law enforcement, and regulators.
Zhaslan Madiyev, the General Director of Binance Kazakhstan, stated that Binance has worked effectively with five regulatory institutions in the country. By maintaining constant communication with Kazakhstan regulators, Binance plans to significantly expand the range of products for local cryptocurrency exchange users by the end of the year, expecting to offer at least 100 approved and listed digital assets on the platform.
Freedom Finance Bank in Kazakhstan has developed a service that allows new exchange users to transfer fiat money to their account on the platform.
Ablaykhan Ospanov, the General Director of Bank Freedom Finance Kazakhstan JSC, described the launch of a pilot project for operating cryptocurrency exchanges in Kazakhstan as “a great support for the whole industry”. Binance Kazakhstan users can buy and sell cryptocurrencies using balance, spot trading, and conversion, with an expected expansion of the range of services offered.