After receiving an initial “in-principle” approval to operate in Kazakhstan, Binance was granted a permanent license to manage a digital asset platform and provide custody services in the country by the AIFC Financial Services Authority.
The AIFC Financial Services Authority in Kazakhstan granted Binance a permanent license to manage digital assets and provide custody services at the Astana International Financial Center. With this news, Binance is now an official regulated platform within the country.
Gleb Kostarev, Asia regional head at Binance, said this is another example of Binance’s compliance-focused policies. Earlier this year, Binance began taking steps to establish operations in Kazakhstan when it signed its first MoU on May 25th.
The document pledged assistance from Binance to help further crypto adoption and regulation within the country. A second followed on October 3rd intending to fight financial crime. This most recent development follows multiple actions by authorities which work to increase the opportunities for cryptocurrencies in the country.
On Sept. 28, the president of Kazakhstan informed a local news agency that the government is ready to allow for the conversion of crypto to fiat currency if demand increases.
In June, The Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan created a program enabling crypto exchanges to open bank accounts and operate legally in the Astana International Finance Center.
Previously, Kazakhstan had a reputation for being a good place to mine crypto due to its low energy prices. However, over the last year, the country has started requiring mining companies to report their power consumption, as well as implementing new tax guidelines that are expected to have an impact on the industry.