Binance Kazakhstan License Was Approved for Operation

Key Points:

• Binance Kazakhstan license has been approved with formal consent from the AFSA for a full operation.
• The development highlights Kazakhstan’s growing attractiveness for cryptocurrency firms.

Binance Kazakhstan has taken one other important step toward its ambition of being the very first fully regulated Digital Asset Trading Facility, or DATF, in Kazakhstan.

Read more: Binance Compliance Workforce Expands to 700 by 2024 as Costs Surge

Binance Kazakhstan License Approved for Expanding Operations

Binance has been granted formal consent by the Astana Financial Services Authority for a full regulatory license.

The exchange announced that its Kazakhstan operation had completed a multi-stage, very complex approval process, successfully passing external financial audits and ISO certifications for IT systems, as well as passing internal and external regulatory inspections. In-depth assessments were done to ensure that Binance Kazakhstan conformed to strict regulatory standards and sustained quality operational levels.

AFSA, the authority responsible for regulating financial and non-financial services at AIFC, has granted an in-principle approval of Binance Kazakhstan‘s application following thorough due diligence and analysis. The Binance Kazakhstan license will also permit the exchange to undertake crypto trading, principal investment dealing, and custody of digital assets.

Kazakhstan’s Crypto Market: Binance Steps in as First Fully Regulated DATF

The Binance Kazakhstan license approval places the exchange in good standing as Kazakhstan recently has emerged as a key market for cryptocurrency firms, particularly after the 2021 crackdown by China on crypto mining forced many miners and digital asset companies to drive into the region. Yet, the not-so-easy regulatory environment in the country means not all foreign exchanges have been able to meet the local regulatory threshold.

Meanwhile, Coinbase tried its luck in Kazakhstan but received somewhat cold resistance when it had to make some hard decisions regarding regulation. It was blocked in December 2023 for not complying with Kazakhstan‘s digital asset law, as it traded uninsured cryptocurrencies, which are strictly prohibited under the current Kazakhstani regulation.