Binance launches regulated platform in Kazakhstan.
The global cryptocurrency exchange Binance has announced the launch of a regulated digital asset platform in Kazakhstan, as regulatory issues continue to grow in Western countries. The launch of the new platform was announced at a press event on June 20, 2023, and was attended by representatives of Kazakhstan’s banking industry, as well as Binance Kazakhstan’s leadership.
The cryptocurrency exchange received in-principle approval to operate in Kazakhstan in August, and a permanent license to offer a digital asset platform and provide custodial services at the Astana International Financial Center (AIFC) in the country from the AIFC Financial Services Authority in October of last year.
The new platform will provide a range of crypto and fiat-focused services for Kazakhstani users, including exchange and conversion services, deposit and withdrawal of fiat, and custody of crypto assets.
Banking services will be provided by Kazakhstan’s Freedom Finance Bank, enabling new digital asset exchange users to transfer fiat funds to their accounts on the platform. There are currently two fiat channels available for deposit and withdrawals: bank cards and bank transfers via Freedom Finance Bank.
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This latest move by the leading crypto exchange by trading volume comes amid growing regulatory issues in the United States and several European countries. Binance is currently facing lawsuits from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
In addition to its problems in the U.S., the crypto exchange is also facing regulatory pushback from several European countries. One report suggests that the exchange has been under investigation in France since early 2022 on charges of “aggravated money laundering”. The exchange had to exit the Dutch market after failing to secure a virtual asset service provider license from regulators in the Netherlands. The crypto exchange has also applied to wind down its services in the United Kingdom and Cyprus.
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Binance has claimed that its exit from several European countries over the past few weeks was to focus on becoming compliant with the European Union-approved Markets in Crypto Assets (MiCA) regulations. However, reports suggest that European regulators are working with the SEC on the Binance investigation.
Binance is not the only global crypto exchange focusing on the Asian market amid growing regulatory uncertainty in the United States and Europe. Gemini has announced its plans to focus on the Asia Pacific region, with an increase of staff at the crypto exchange’s Singapore division and the establishment of an engineering division in India. With Hong Kong emerging as a growing crypto hub, many crypto platforms are also assessing their plans to enter the country, with legislators in the nation already inviting the likes of Coinbase to set up their offices.
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