Amid growing regulatory uncertainty in the West, several crypto platforms have shifted their focus toward the Asia–Pacific region.
Global cryptocurrency exchange Binance announced 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 Kazakhstan’s banking industry and Binance Kazakhstan’s leadership.
The cryptocurrency exchange obtained an in-principle approval to operate in Kazakhstan in August and a permanent license to offer a digital asset platform and provide custodial services at the Astana International Financial Center (AIFC) in the country from the AIFC Financial Services Authority in October last year.
The new platform will offer a slew of crypto and fiat-focused services for Kazakhstani users, including exchange and conversion services, deposit and withdrawal of fiat, and custody of crypto assets.
The banking services will be offered by Kazakhstan’s Freedom Finance Bank bank, which will allow the new digital asset exchange users to transfer fiat funds to their accounts on the platform. There are two fiat channels available to deposit and withdraw at present namely bank cards and bank transfers via Freedom Finance Bank.
Binance Kazakhstan general manager – Zhaslan Madiyev told Cointelegraph that their progress in Kazakhstan goes beyond the digital asset platform and added:
“Today we launched a local crypto exchange Binance in Kazakhstan integrated with the bank channel. This is the first such project in the region. Binance Kazakhstan is going to adopt Binance’s best practice for their further deployment on a regional scale. In particular, we intend to develop the human capital of the country and the industry, so that future specialists and experts in blockchain can create their own projects and products for the further development of the entire industry and its gradual introduction into the daily lives of citizens”
The latest move for the leading crypto exchange by trading volume comes amid growing regulatory troubles in the United States and several European countries. Binance is currently embroiled in a U.S. Securities and Exchange Commission lawsuit and a lawsuit from the Commodity Futures Trading Commission.
Apart from its troubles in the U.S., the crypto exchange is also facing regulatory pushback from several European countries. One report indicated that the exchange has been under investigation in France since early 2022 on “aggravated money laundering” charges. The exchange had to exit the Dutch market after failing to secure a virtual asset service provider license from regulators in the Netherlands. The crypto exchange also applied to wind down its services in the United Kingdom and Cyprus.
Binance maintained its exit from several European countries over the past few weeks was to focus on becoming compliant with the European Union-approved Markets in Crypto-Assets (MiCA) regulations. However, reports suggest that European regulators are working with the SEC on the Binance investigation.
Binance is not the only global crypto exchange eyeing the Asian market amid growing regulatory uncertainty in the U.S. and Europe. Gemini announced its plans to focus on the Asia–Pacific region with an increase of staff at the crypto exchange’s Singapore division and establish an engineering division in India. With the rise of Hong Kong as a growing crypto hub, many crypto platforms are also assessing their plans to enter the country with legislators in the nation already inviting the likes of Coinbase to set up their office.