Binance sets up a regulated platform in Kazakhstan in the midst of turmoil in the West.
Several cryptocurrency platforms have moved their focus to the Asia Pacific region amid growing regulatory uncertainties in the West.
In response to growing regulatory problems in the West, prominent cryptocurrency exchange Binance announced the opening of a regulated digital asset platform in Kazakhstan. In the presence of officials from Binance Kazakhstan and the banking and finance industries, the new platform’s launch was announced at a press conference on June 20, 2023.
The cryptocurrency exchange received an in-principle permit to operate in Kazakhstan in August, and the AIFC Financial Services Authority allocated it a permanent license in October of the year before to offer a platform for digital assets and offer custodial services at the country’s AIFC.
For users in Kazakhstan, the new platform will provide a wide range of services aimed toward cryptocurrencies and fiat, such as exchange and conversion services, fiat deposits and withdrawals, and custody of cryptocurrency assets.
The Freedom Finance Bank in Kazakhstan will offer banking services, enabling the new customers of the digital asset exchange to add fiat money to their accounts on the platform. Currently, there are two fiat channels for deposits and withdrawals: bank cards and bank transfers through Freedom Finance Bank.
The latest move for the top cryptocurrency exchange by trading volume aligns with increasing regulatory problems in the US and numerous European nations. At the moment, Binance is facing lawsuits from both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) of the United States.
In addition to difficulties in the United States, the cryptocurrency exchange is now seeing regulatory pushback from a number of European nations. According to a report, the exchange has been under investigation in France since early 2022 for “aggravated money laundering” charges. After failing to obtain a virtual asset service provider license from Dutch regulators, the exchange was forced to leave the Dutch market. The cryptocurrency exchange also submitted an application to discontinue conducting business in Cyprus and the United Kingdom.
The reason for Binance’s recent withdrawal from a number of European nations, according to the company, was to concentrate on complying with the Markets in Crypto Assets (MiCA) laws, which were approved by the European Union. Reports, however, suggest the SEC and European officials are working together on the Binance inquiry.
As regulatory uncertainty in the United States and Europe grows, Binance is not the only global cryptocurrency exchange considering the Asian market. As part of its efforts to concentrate on the Asia Pacific area, Gemini said it will hire more people for its Singapore office as well as establish an engineering branch in India.
A growing number of cryptocurrency platforms are considering their plans to enter the country as a result of the rise of Hong Kong as a developing hub for the cryptocurrency industry. Legislators in the nation have already invited companies such as Coinbase to set up their headquarters in Hong Kong.