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Global cryptocurrency exchange Binance has announced the launch of a regulated digital asset platform in Kazakhstan amid growing regulatory challenges in the West. The launch of the new platform was announced at a press conference on June 20, 2023 in the presence of representatives of the Kazakhstan banking industry and Binance Kazakhstan management.
The cryptocurrency exchange received an in-principle permit 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 last year. year.
The new platform will offer Kazakh users a variety of crypto- and fiat-focused services, including exchange and conversion services, fiat deposits and withdrawals, and storage of crypto assets.
Banking services will be offered by Kazakhstan-based Freedom Finance Bank, which will allow new users of the digital asset exchange to transfer fiat funds to their accounts on the platform. There are currently two fiat channels available for deposits and withdrawals, namely bank cards and wire transfers through Freedom Finance Bank.
The latest move for the leading cryptocurrency exchange by trading volume comes amid growing regulatory challenges in the US and several European countries. Binance is currently involved in a US Securities and Exchange Commission (SEC) lawsuit, as well as a Commodity Futures Trading Commission (CFTC) lawsuit.
In addition to the problems in the US, the cryptocurrency exchange is also facing regulatory resistance from several European countries. One report indicated that the exchange has been under investigation in France for “aggravated money laundering” since early 2022. The exchange was forced to exit the Dutch market after failing to obtain a virtual asset service provider license from the Dutch regulators. The cryptocurrency exchange has also applied to wind down its services in the UK and Cyprus.
Related: Binance SEC Lawsuit May Affect Crypto Exchange Global Plans
Binance has maintained its exit from several European countries over the past few weeks to focus on complying with the rules approved by the European Union for Cryptocurrency Asset Markets (MiCA). However, reports say European regulators are working with the SEC to investigate Binance.
Binance is not the only global cryptocurrency exchange eyeing the Asian market amid growing regulatory uncertainty in the US and Europe. Gemini has announced plans to focus on the Asia-Pacific region by adding staff to the crypto exchange’s Singapore division and establishing an engineering division in India. With the rise of Hong Kong as a growing cryptocurrency hub, many cryptocurrency platforms are also evaluating their plans to enter the country, and the country’s legislators are already inviting the likes of Coinbase to open their office.