Binance Expands to Kazakhstan with Regulated Platform Amid Western Challenges

Binance, a prominent global cryptocurrency exchange, has revealed the launch of its regulated digital asset platform in Kazakhstan, seeking to establish a foothold in the country as it faces mounting regulatory obstacles in Western jurisdictions. The announcement of the new platform took place during a press event on June 20, 2023, attended by representatives from Kazakhstan’s banking industry and Binance Kazakhstan’s leadership.

Having obtained preliminary approval to operate in Kazakhstan in August, followed by a permanent license from the AIFC Financial Services Authority in October last year, Binance now positions itself to offer a range of crypto and fiat-related services to users in Kazakhstan. These services include exchange and conversion services, fiat deposit and withdrawal options, as well as custody solutions for crypto assets.

To facilitate banking services, Binance has partnered with Kazakhstan’s Freedom Finance Bank, enabling users of the digital asset exchange to transfer fiat funds to their platform accounts. Presently, the platform supports two fiat channels for deposits and withdrawals: bank cards and bank transfers via Freedom Finance Bank.

Binance’s expansion into Kazakhstan comes at a time when it faces regulatory challenges in the United States and various European countries. The exchange is currently dealing with a lawsuit filed by the U.S. Securities and Exchange Commission (SEC) and also facing legal action from the Commodity Futures Trading Commission (CFTC).

In addition to its issues in the U.S., Binance has encountered regulatory scrutiny in several European nations. Reports indicate that the exchange has been under investigation in France since early 2022 on charges related to “aggravated money laundering.” Binance recently withdrew from the Dutch market after failing to secure a virtual asset service provider license from regulators in the Netherlands. Moreover, the exchange has applied to wind down its services in the United Kingdom and Cyprus.

Binance has cited its commitment to achieving compliance with the European Union-approved Markets in Crypto Assets (MiCA) regulations as the reason for its recent exits from various European countries. However, there are indications that European regulators are collaborating with the SEC in the ongoing investigation of Binance.

As Binance navigates the regulatory challenges in the West, it is not alone in its pursuit of the Asian market. Gemini, another major cryptocurrency exchange, has announced its plans to focus on the Asia Pacific region by expanding its staff in Singapore and establishing an engineering division in India. Meanwhile, Hong Kong’s emergence as a growing crypto hub has prompted many crypto platforms to explore opportunities in the region, with legislators inviting companies like Coinbase to establish a presence there.

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