Binance Obtains Former Regulatory Consent in Kazakhstan Ahead of Full Licensing

As a researcher with a background in finance and cryptocurrencies, I find myself constantly intrigued by the dynamic landscape of digital assets. The recent approval granted to Binance Kazakhstan by the Astana Financial Services Authority (AFSA) is yet another significant milestone in this ever-evolving world.


In simpler terms, Binance, a major player in the worldwide crypto exchange market, has now obtained approval from Kazakhstan’s financial regulators. This step brings Binance one step closer to fully licensing its operations within the nation.

Last Friday, it was revealed that Binance’s local division, Binance Kazakhstan, had been given approval from the Astana Financial Services Authority (AFSA). This makes Binance the first digital asset trading platform in Central Asia to receive this kind of acknowledgement before a full license is issued.

Moving Toward Full Licensing

Even though Binance Kazakhstan hasn’t received a complete license within the nation’s extensive regulatory system designed for cryptocurrency service providers, this approval indicates that the platform has fulfilled the preliminary regulatory standards and conditions.

As a crypto investor, I’m thrilled about the latest announcement that our local exchange has received preliminary approval from regulatory authorities. This brings us one significant step closer to having a fully licensed Digital Asset Trading Facility (DATF), making it the first of its kind in our country. It’s an exciting time for us, as this move paves the way for more secure and transparent digital asset trading.

As per the announcement, Binance Kazakhstan has successfully fulfilled all necessary conditions for obtaining a license. These include undergoing audits from both internal and external auditors, earning ISO certifications for their IT infrastructure, and receiving an assessment by the AFSA to scrutinize the firm’s security protocols.

After receiving the necessary approval, the exchange can set up a digital assets trading hub, providing various cryptocurrency-centric services to local users. Additionally, this platform will function as a safekeeper for these digital assets.

Vishal Sacheendran, head of regional markets at Binance, expressed excitement about obtaining the complete license, as it allows them to carry on serving users in Kazakhstan, and also contributes to boosting the local digital-asset community’s development.

Binance’s Expansion into Kazakhstan

In 2023, Binance broadened its business ventures into Central Asia by establishing Binance Kazakhstan, its local division. This step was taken after the exchange obtained a license in September 2022, enabling it to run a digital asset platform and provide custody services within the Astana International Financial Centre (AIFC).

After obtaining the license, Binance has built a robust partnership with Kazakhstan. In October 2022, it was disclosed that Kazakhstan’s Central Bank opted for BNB Chain, a blockchain closely affiliated with Binance and renowned for its BEP20 smart contract support, to develop their central bank digital currency (CBDC).

In 2021, Kazakhstan’s Central Bank Digital Currency (CBDC), known as the Digital Tenge, concluded its first trial run. Since then, it has been in a second round of beta testing with selected merchants since 2022. Upon completion of this testing phase, the Digital Tenge is anticipated to be launched on the BNB Chain.

In the same year, Binance entered into an agreement with the Kazakhstan administration to foster cryptocurrency knowledge and aid in creating a thorough regulatory structure.

Moreover, this collaboration opens up new possibilities for Kazakhstan within the cryptocurrency sector, such as establishing a blockchain-driven venture capital fund via the Astana Hub, thereby nurturing local innovation.

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2024-09-06 13:42