Binance has received an in-principle license to operate as a digital asset service provider in Kazakhstan from the Astana Financial Services Authority, or AFSA, a nation’s independent financial authority.
In a statement released on Monday, AFSA stated that it has given Binance preliminary authorization to operate as a digital asset trading facility and to offer custody services in the Astana International Financial Centre, a major financial hub in Nur-Sultan.
Binance stated in a blog post on Monday that it must finish the application procedure in order to receive approval, which the cryptocurrency exchange anticipates doing “in due course.”
The decision to award Binance a license to conduct business in Kazakhstan may result in the growth of a “vibrant ecosystem of digital assets industry locally and regionally,” according to AFSA CEO Nurkhat Kushimov.
Changpeng Zhao, the founder, and CEO of Binance, also said that the exchange sought to provide goods and services “in a safe and well-regulated environment” globally.
A memorandum of agreement was signed in May by CZ and Kazakhstan President Kassym-Jomart Tokayev to support the “growth of the virtual asset market” in Kazakhstan. In accordance with the outlined plan, Binance would help Kazakhstan create regulatory and legislative frameworks for cryptocurrencies.
Regulators cracked down on Binance’s operations in their individual jurisdictions in 2021, sending warnings to potential investors and in some cases charging the exchange was operating without the necessary licenses.
These regulators included those in the US, the UK, Canada, Japan, and Thailand. However, the exchange obtained regulatory license in 2022 to conduct business in Dubai, France, Bahrain, Spain, and Bahrain.