The global cryptocurrency exchange Binance advertisement the launch of a regulated digital asset platform in Kazakhstan amid growing regulatory troubles in the West. The launch of the new platform was announced at a press event on June 20, 2023, in the presence of representatives of the Kazakhstan banking industry, and the leadership of Binance Kazakhstan.
The cryptocurrency exchange gained approval in principle to operate in Kazakhstan in August and a permanent license to offer a digital asset platform and provide custody services at the country’s Astana International Financial Center (AIFC) from the Financial Services Authority. of the AIFC in October last year.
The new platform will offer a number of fiat and cryptocurrency-focused services to Kazakh users, including exchange and conversion services, fiat deposit and withdrawals, and crypto asset custody.
Banking services will be offered by Kazakhstan’s Freedom Finance Bank, which will allow users of the new digital asset exchange to transfer funds in fiat to their accounts on the platform. Currently, there are two channels in fiat to deposit and withdraw funds: bank cards and bank transfers through Freedom Finance Bank.
The latest move by the leading cryptocurrency exchange by trading volume comes amid mounting regulatory troubles in the United States and several European countries. Binance is currently embroiled in a lawsuit from the United States Securities and Exchange Commission (SEC), as well as a lawsuit from the Commodity Futures Trading Commission (CFTC).
Aside from its troubles in the US, the cryptocurrency exchange is also facing regulatory pressure from several European countries. A report indicated that the exchange had been under investigation in France since early 2022 on charges of “aggravated money laundering.” The exchange had to leave the Dutch market after failing to obtain a virtual asset service provider license from regulators in the Netherlands.. The cryptocurrency exchange has also requested to shut down its services in the UK and Cyprus.
Binance maintained that its exit from several European countries in recent weeks was to focus on compliance with the Crypto Asset Markets (MiCA) regulations approved by the European Union. However, reports suggest that European regulators are working with the SEC on the Binance investigation.
Binance is not the only global cryptocurrency exchange eyeing the Asian market amid growing regulatory uncertainty in the US and Europe.. Gemini announced its plans to focus on the Asia-Pacific region with an increase in staff at the Singapore division of the exchange and to establish an engineering division in India. With Hong Kong rising as a cryptocurrency hub, many cryptocurrency platforms are also evaluating their plans to enter the country, and the nation’s lawmakers have already invited companies like Coinbase to set up office.
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