Binance cryptocurrency exchange has inked an MOU with the government of Kazakhstan to support “virtual asset market development” in the Central Asian country.
Binance and Kazakhstan’s Ministry of Digital Development, Innovations, and Aerospace Industry signed a Memorandum of Understanding on Wednesday during Changpang Zhao’s official visit to the country.
Binance CEO Changpeng Zhao met with Kazakh President Kassym-Jomart Tokayev, First Deputy Chief of Staff Timur Suleimenov, and Bagdat Musin, the country’s digital innovation minister.
Binance will help Kazakhstan build legislative rules and regulatory procedures for crypto assets as part of the framework.
According to the official statement, the Ministry of Digital Growth, Innovations, and Aerospace Industry would “explore chances to integrate financial infrastructure into the cryptocurrency market” and support the development of blockchain technology.
Since absorbing Chinese mining capacity following Beijing’s comprehensive crackdown on the industry, Kazakhstan has emerged as a key player in the Bitcoin (BTC) market.
Canaan and BTC.com, two Chinese Bitcoin mining companies, have relocated their operations to the nation to take advantage of low-cost, plentiful fuel and favorable regulatory conditions.
However, Kazakhstan’s Bitcoin mining boom appears to be unsustainable, as the flood of miners put pressure on the country’s energy supply, prompting the government to restrict miners’ access to electricity.
The government declared earlier this month that all Bitcoin miners will be compelled to submit detailed data on their electricity consumption.
