Binance Bags Operational Approval in Crypto Mining Hub Kazakhstan

Kazakhstan is looking to establish a lucrative ecosystem that nurtures the digital assets sector.

By Radhika Parashar | Updated: 16 August 2022 13:14 IST

Binance Bags Operational Approval in Crypto Mining Hub Kazakhstan

Photo Credit: Facebook/ Binance

The overall sentiment towards the crypto sector in Kazakhstan is pretty welcoming

Highlights

The Astana Financial Services Authority (AFSA) has granted license to Bin
Binance is expected to provide a safe system around crypto in Kazakhstan
Binance had signed an MoU with Kazakhstan in May this year

Kazakhstan, which has emerged as a crypto mining hotspot in recent years, has granted Binance an in-principle approval to provide its crypto-centric services. The Astana Financial Services Authority (AFSA), which operates as an independent financial regulator in Kazakhstan, has provided the license to Binance to function as a digital asset trading facility in the Astana International Financial Centre, a financial hub located in Kazakhstan's capital Nur-Sultan. The US-based crypto exchange is expected to complete the due paperwork in coming days.

Kazakhstan is looking to establish a lucrative ecosystem that nurtures the digital assets sector.

“Large investors seeking new markets need clear-cut and well-managed rules as well as high standards of regulatory practice. When a regulator meets these requirements, it creates collaboration based on trust and an ecosystem where players can work safely and efficiently. We believe that Binance's work will further develop this vibrant ecosystem of digital assets industry locally and regionally,” said Nurkhat Kushimov, Chief Executive Officer of AFSA, in an official blog post.

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In recent times, several residents of Kazakhstan found themselves employed in the crypto mining sector. With escalated crypto mining activities, parts of the country had started witnessing power outages, ensuring that the government does take measures to control the situation.

In May, the government of Kazakhstan mandated crypto miners to submit detailed reports justifying their power consumption requirements.

The overall sentiment towards the crypto sector in the Asian nation is welcoming. The authorities there are mulling over rules to make exploration in the sector more sustainable and safer for the investors.

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As per Kushimov, granting Binance an operational license is a step towards developing a nurturing environment for the sector.

For Binance, getting an in-principle approval in Kazakhstan is one of the steps to obtain a license in the AIFC. Upon successful finalisation of its licensing application, Binance will be able to provide its services in the country.

The development has definitely made Binance CEO Changpeng Zhao elated. The company chief is looking to make Binance the most licensed crypto exchange in the world.

“Kazakhstan has shown to be a pioneer in Central Asia crypto adoption and regulation. This further signifies Binance's commitment to being a compliance-first exchange and providing products and services in a safe and well-regulated environment across the globe,” the post quoted Zhao as saying.

Back in May, Binance signed a Memorandum of Understanding with the Ministry of Digital Development, Innovations and Aerospace Industry of the Republic of Kazakhstan. As part of the agreement, both parties had expressed mutual interest in virtual assets market development in the country.

#Binance obtains In-Principle Approval from the Astana Financial Services Authority (AFSA) in Kazakhstan:flag-kz: https://t.co/w5ERAagSCN
— CZ :large_orange_diamond: Binance (@cz_binance) August 15, 2022

The government of Kazakhstan, for now, is all about tightening the noose around illegal crypto activities.

Crypto mining picked up pace in Kazakhstan after China imposed a blanket ban on all crypto activities last September.

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Further reading: Cryptocurrency, Binance, Kazakhstan, Changpeng Zhao

Radhika Parashar

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Radhika Parashar is a senior correspondent for Gadgets 360. She has been reporting on tech and telecom for the last three years now and will be focussing on writing about all things crypto. Besides this, she is a major sitcom nerd and often replies in Chandler Bing and Michael Scott references. For tips or queries you could reach out to her at RadhikaP@ndtv.com. More