Binance is one step closer to becoming Kazakhstan’s first fully regulated crypto exchange. According to a September 6 announcement, Binance Kazakhstan, the exchange’s local branch, has received “formal consent” for a full regulatory license from the Astana Financial Services Authority (AFSA), Kazakhstan’s financial regulator.
The crypto exchange noted that its Kazakhstan branch has completed all necessary steps for licensing, including extensive external financial audits, obtaining ISO certifications for its IT systems, and undergoing a series of internal and external audits and regulatory inspections.
Once granted, the full license will authorize Binance Kazakhstan to operate a virtual assets trading facility, manage principal investments, and provide custody services for cryptocurrencies. This development marks a significant milestone for Binance in its efforts to comply with local regulations and expand its global presence.
Binance’s success in Kazakhstan stands in contrast to the experience of U.S.-based Coinbase, which was blocked from operating in the country in December 2023 for violating digital asset regulations. Specifically, Coinbase was found to be in violation of Article 11, Clause 5 of the Law on Digital Assets, which restricts unsecured digital assets outside the Astana International Financial Center (AIFC).
Before now, Binance was part of list of the few crypto exchanges operational in the country. These exchanges, which include CaspianEx, Biteeu, ATAIX, Upbit, Xignal&MT, and Bybit, have only received “in-principle” approval from the AFSA and are not yet fully licensed.
This development in Kazakhstan follows Binance’s receipt of regulatory approval to resume operations in India after a seven-month ban. On August 15, 2024, Binance confirmed its registration as a reporting entity with India’s Financial Intelligence Unit (FIU). This came after the FIU had blocked Binance and eight other crypto exchanges in January 2024 for violating anti-money laundering laws and operating illegally. The regulator had also announced a $2.25 million fine for Binance in June.
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