🌎 Binance Gains Regulatory Approval to Operate in Kazakhstan

Binance has received formal consent from the Astana Financial Services Authority to operate as a fully regulated trading platform in Kazakhstan. This marks a significant step towards becoming the first fully regulated crypto exchange in the region.

In a recent announcement, Binance highlighted that the approval for its local branch, Binance Kazakhstan, positions it as potentially the first crypto exchange in Kazakhstan with a full regulatory license. The exchange mentioned that its branch had to pass a series of external financial audits, secure ISO certifications for its IT systems, and undergo multiple internal and external audits and regulatory inspections.

Once the full license is granted, Binance Kazakhstan will be authorized to operate a virtual assets trading facility, manage principal investments, and offer custody services for cryptocurrencies.

Kazakhstan has become an increasingly attractive market for cryptocurrency companies, particularly after China’s crackdown on crypto mining in 2021 led miners and digital asset firms to relocate to the region. However, access to Kazakhstan’s market remains highly regulated, and not all foreign exchanges have managed to navigate the country’s stringent regulatory landscape successfully.

In contrast to Binance’s successful journey, the U.S.-based crypto exchange Coinbase faced challenges in Kazakhstan. In December 2023, Coinbase was blocked from operating in the country due to violations of the local digital asset laws. The Ministry of Digital Development cited the trading of uninsured cryptocurrencies on Coinbase’s platform as a breach of Clause 5, Article 11 of Kazakhstan’s Law on Digital Assets, which restricts the circulation of such assets.