Binance, the global cryptocurrency exchange, has announced the launch of a regulated digital asset platform in Kazakhstan amid increasing regulatory troubles in the West. This strategic move comes as the crypto exchange faces lawsuits from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), as well as regulatory pushback from several European countries.
The launch of the new platform was announced at a press event in Kazakhstan, attended by representatives of the country’s banking industry and Binance Kazakhstan’s leadership. Binance received an in-principle approval to operate in Kazakhstan and a permanent license to provide a digital asset platform and custodial services from the Astana International Financial Center (AIFC) Financial Services Authority in 2022.
The new platform will offer a range of crypto and fiat-focused services for Kazakhstani users, including exchange and conversion services, deposit and withdrawal of fiat, and custody of crypto assets. Banking services will be provided by Kazakhstan’s Freedom Finance Bank, allowing users to transfer fiat funds to their accounts on the platform. Currently, there are two fiat channels available for deposit and withdrawals, namely bank cards and bank transfers via Freedom Finance Bank.
Binance’s decision to establish a regulated platform in Kazakhstan is viewed as an attempt to mitigate the regulatory risks it faces in the United States and Europe. The crypto exchange has exited the Dutch market and has applied to wind down its services in both the United Kingdom and Cyprus due to regulatory concerns.
In the face of these challenges, Binance is not the only global crypto exchange seeking growth opportunities in the Asian market. Gemini has also announced plans to focus on the Asia Pacific region, increasing staff at its Singapore division and launching an engineering division in India. With Hong Kong emerging as a growing crypto hub, many crypto platforms are assessing their plans to enter the market, as the nation’s legislators invite industry giants like Coinbase to establish offices in the country.
The increasing regulatory scrutiny of cryptocurrency exchanges in the United States and Europe raises the question of whether, and to what extent, the shift toward regulated platforms like Binance’s in Kazakhstan will impact the development and growth of the broader crypto market. While the move may offer a temporary solution for Binance and others, the long-term implications of navigating regulatory complexity remain uncertain.
Source: Cointelegraph
