Binance Receives In-Principle Approval To Operate In Kazakhstan

Binance has been licensed by Kazakhstan's independent financial regulator Astana Financial Services Authority, or AFSA, to operate as a crypto broker in the country.

In an announcement Monday, the AFSA revealed that it had granted in-principle approval to the world's biggest cryptocurrency exchange which can now operate a Digital Asset Trading Facility and Provide Custody in the Astana International Financial Centre (AIFC).

This makes AFSA the first financial center in the Commonwealth of Independent States (CIS) to be working with the crypto exchange registered in the Cayman Islands.

"Large investors seeking new markets need clear-cut and well-managed rules as well as high standards of regulatory practice. When a regulator meets these requirements, it creates collaboration based on trust and an ecosystem where players can work safely and efficiently. We believe that Binance's work will further develop this vibrant ecosystem of digital assets industry locally and regionally," said Nurkhat Kushimov, the Chief Executive Officer of AFSA.

In a blog post, the exchange revealed that the authorities still require "Binance to complete the full application process" and added that it will do so "in due course."

AFSA CEO Nurkhat Kushimov believes that granting Binance an in-principle approval will initiate a "vibrant ecosystem of digital assets industry locally and regionally."

Additionally, Binance CEO Changpeng Zhao met with Kazakhstan President Kassym-Jomart Tokayev to sign a memorandum of understanding in May. According to the MoU, the crypto exchange would "help advise on developing the legislative framework and regulatory policy for crypto-assets in the Republic of Kazakhstan."

Kazakhstan became a crypto mining hub after the China bitcoin crackdown and is ranked below the United States in terms of hashrate generated. However, the pressure on the power grids in the country surged which further caused an increase in taxes for crypto miners. Many mining operations were shut down as well.