After accumulating several memoranda of understanding (MoU) and initial approval “in principle” to operate in Kazakhstan, Binance obtained a permanent license to operate in the country.
As of October 6, the AIFC Financial Services Authority of Kazakhstan has granted a permanent license to operate a digital asset platform and provide custody services in the Astana International Financial Center.
This newly acquired perpetual license gives Binance official status as a regulated platform in the country. Gleb Kostarev, Binance’s regional head for Asia, said this was another step for Binance to be a “compliance-focused exchange.”
Kostarev highlighted Kazakhstan’s recent crypto efforts and activities:
“We welcome Kazakhstan’s efforts to become a leading player in emerging digital technologies and the cryptocurrency ecosystem.”
Binance began laying the groundwork for operations in Kazakhstan earlier this year when it signed its first memorandum of understanding on May 25, pledging to contribute to the further adoption and regulation of digital currencies in the country. It followed again on October 3 to help fight financial crime.
Related Topic: Kazakh Central Bank “Won’t Ignore” the Cryptocurrency Market
This development from Kazakhstan follows several actions taken by the authorities to increase opportunities related to cryptocurrency in the country.
On September 28, the President of Kazakhstan, Kassym-Jomart Tokayev, told a local news agency that in the event of an increase in demand, the government was ready to agree on a way to convert cryptocurrencies into fiat currency.
In June, the Ministry of Digital Development, Innovations and Space Industry of Kazakhstan launched a program to allow cryptocurrency exchanges to open bank accounts and conduct legal operations in the Astana International Financial Center.
Kazakhstan previously had a good reputation as a good location for mining cryptocurrency due to its local energy prices. Over the past year, the state has increased reporting requirements for electricity consumption for mining companies, along with new tax guidelines with discretionary impact on the industry.