Binance launches regulated platform in Kazakhstan amid troubles in the West`

Binance Launches Regulated Digital Asset Platform in Kazakhstan

Binance, a global cryptocurrency exchange, unveiled a regulated digital asset platform in Kazakhstan during a press conference on June 20, 2023, in the presence of representatives from the banking industry as well as Binance Kazakhstan’s leadership. This comes as the West faces increasing regulatory issues.

In August, the cryptocurrency exchange was granted an in-principle approval to operate in Kazakhstan, and in October, the AIFC Financial Services Authority provided a permanent license to the exchange for offering a digital asset platform and providing custodial services at the Astana International Financial Center (AIFC).

The new platform will provide Kazakhstani users with a range of services related to crypto and fiat currencies, such as exchange and conversion services, the ability to deposit and withdraw fiat funds, and the storage of crypto assets.

Kazakhstan’s Freedom Finance Bank will be providing banking services to users of the new digital asset exchange, allowing them to transfer fiat funds to their accounts on the platform. Currently, there are two channels available for depositing and withdrawing funds: bank cards and bank transfers via Freedom Finance Bank.

Regulatory Issues in U.S. and Europe Create Challenges for Crypto Exchanges

Binance, the top crypto exchange by trading volume, has taken a new step as regulatory issues in the U.S. and some European countries become increasingly problematic. The company is currently facing a legal suit by the U.S. Securities and Exchange Commission (SEC) and another one from the Commodity Futures Trading Commission (CFTC).

Apart from the issues it has encountered in the United States, the crypto exchange is also being met with regulatory opposition from several European countries. According to one report, the exchange has been under investigation in France since the start of 2022 for “aggravated money laundering”. As a result of not obtaining a virtual asset service provider license from Dutch regulators, the crypto exchange was forced to leave the Dutch market. Furthermore, the exchange has applied to cease its services in the United Kingdom and Cyprus.

The potential of a lawsuit from the SEC against Binance could damage the crypto exchange’s ambitions for global expansion.

Binance has stayed firm on its decision to withdraw from certain European countries in recent weeks, with the intention of meeting the requirements of the Markets in Crypto Assets (MiCA) regulations approved by the European Union. Nevertheless, reports indicate that European authorities are collaborating with the SEC to investigate Binance.

Binance is not the only crypto exchange that has set its sights on the Asian market as regulatory conditions become more uncertain in the US and Europe. Gemini has revealed its intention to focus on the Asia Pacific region, expanding its Singapore division and opening an engineering division in India. Additionally, with Hong Kong’s emergence as a crypto hub, numerous crypto platforms are evaluating their options to enter the country, with legislators already inviting Coinbase to establish an office there.

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