Binance Exchange, after obtaining an AIFC license, has launched a regulated cryptocurrency trading platform in Kazakhstan.
The platform became available in the country after Binance received permanent approval from the AIFC Financial Services Authority (AFSA) last year.
In October of the same year, Binance CEO Changpeng ‘CZ’ Zhao visited the President of Kazakhstan, Kassym-Jomart Kemeluly Tokayev, and signed a Memorandum of Understanding (MoU) between Binance and the Kazakh government.
The MoU aimed to support the development of digital innovation in Kazakhstan. The newly formed exchange, known as the dividends of the organization, will allow prospective customers to trade cryptocurrencies in Kazakhstan with government assurance.
Initially, the trading platform will focus on exchange and conversion services, fiat deposits and withdrawals, and custody of cryptocurrency assets. Binance plans to expand the range of services in the future.
Asset Turysov, the Vice Minister of Digital Development, Innovation, and Aerospace Industry of Kazakhstan, praised the country’s regulatory progress in cryptocurrency.
He acknowledged Binance’s assistance in developing a legislative framework, regulatory policies, and educational initiatives for government agencies and regulators.
The trading platform has received positive feedback from other business leaders, who see it as a model for future platforms. However, Binance Exchange is currently facing regulatory challenges in the United States.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are investigating the exchange. The regulatory scrutiny spans both sides of the Atlantic due to cooperation between regulators in each jurisdiction.
Despite facing these challenges, Binance’s operation in Kazakhstan stands as a noteworthy accomplishment, particularly when considering the recent shutdown of its operations in Cyprus and the United Kingdom.
