Binance Expands its Crypto Empire: Launches Regulated Digital Asset Platform in Kazakhstan

• Binance is expanding its presence in Kazakhstan by launching a local exchange.
• Binance’s recent expansion occurs amidst regulatory pressure in the United States and multiple European nations. 

Amid ongoing legal uncertainty in the US, Binance, the biggest cryptocurrency exchange, is expanding its presence in Kazakhstan by launching a local exchange. This growth comes after Binance obtained a license from the Astana International Financial Center (AIFC) Financial Services Authority (AFSA) in October 2022, allowing the business to manage a platform for digital assets and provide custodial services in the region.

Furthermore, Binance is now recognized in Kazakhstan as a regulated platform thanks to this license. 

Introduction of Binance’s Fresh Exchange

Binance’s unveiling of the new exchange took place during a recent press event, attended by Binance Kazakhstan’s leadership, government officials, and representatives from the banking industry of Kazakhstan. The upcoming digital asset exchange will provide a range of services, including exchange and conversion, fiat currency deposits and withdrawals, cryptocurrency trading, and custody of digital assets.

Freedom Finance Bank in Kazakhstan will facilitate banking services to enable exchange users to transfer their fiat funds from the bank to the newly launched platform. Presently, users can make fiat transfers via bank cards and transfers through Freedom Finance Bank.

Ablaykhan Ospanov, the Managing Director of Bank Freedom Finance Kazakhstan JSC, emphasizes the significance of this development for the industry and suggests that other countries should take note and consider implementing similar measures. The Vice Minister of Digital Development, Innovation, and Aerospace Industry in Kazakhstan, Asset Turysov, emphasized the government’s commitment to fostering collaboration between crypto exchanges, the AIFC, and second-tier banks. 

Turysov highlighted that Binance played a pivotal role in aiding the country in developing a legislative framework and a comprehensive policy for crypto regulation. Simultaneously, Zhaslan Madiyev, the General Manager of Binance Kazakhstan, praised the regulatory bodies for their involvement in the industry. He also revealed plans to expand the product line of the new exchange, aiming to have at least 100 digital assets approved by the end of 2023.

Current Regulatory Turmoil in Western Jurisdictions

Binance’s recent expansion occurs amidst regulatory challenges in the United States and multiple European nations. Binance is facing a lawsuit initiated by the Commodity Futures Trading Commission (CFTC), accusing the exchange of unlawfully encouraging U.S. users to participate in derivative trading.

Furthermore, the exchange has faced another lawsuit filed by the U.S. Securities and Exchange Commission (SEC). The SEC, a securities regulatory body, accuses Binance of violating securities laws by facilitating the trading of certain cryptocurrencies as securities, among other allegations.

Initially, the SEC sought a temporary restraining order to freeze the assets of BinanceUS. However, on June 18, both parties reached a compromise, resolving the issue without asset freezing.

In addition to the challenges faced in the United States, Binance is encountering regulatory difficulties in multiple European countries. Since early last year, the exchange has been under investigation regarding money laundering concerns in France. Furthermore, Binance has ceased its services in Cyprus and the United Kingdom. The exchange also exited the Dutch market due to its inability to secure a virtual asset provider license from regulators in the Netherlands.

Binance justified its withdrawal from several European countries as a step toward compliance with the European Union-endorsed regulations known as Markets in Crypto Assets (MiCA). However, reports suggest that European regulators are cooperating with the SEC in investigating Binance.

In response to the regulatory uncertainties prevailing in Western jurisdictions, numerous exchanges seek entry into the Asian market. Gemini, for instance, is redirecting its attention to the Asia Pacific Region. They have announced plans to expand their team in Singapore and establish an engineering division in India. 

Meanwhile, Hong Kong has emerged as a rapidly developing cryptocurrency hub, attracting the interest of many crypto exchanges. The country is also actively encouraging crypto platforms like Coinbase to establish regional offices there.