Binance, one of the world’s leading cryptocurrency exchanges, has launched a regulated digital asset platform in Kazakhstan, providing custody and exchange services for Kazakhstani users. The new platform received an in-principle approval to operate in Kazakhstan in August 2022 and has now obtained a permanent license to offer digital assets and custodial services from the AIFC Financial Services Authority. The banking services will be offered by Freedom Finance Bank, allowing users to deposit and withdraw fiat funds to their accounts on the platform.
The move comes amidst growing regulatory troubles for Binance in the US and Europe. The exchange is facing lawsuits from both the SEC and CFTC in the US, while also being investigated in France for alleged money laundering charges. Binance had to exit the Dutch market after failing to secure a virtual asset service provider license, and it has applied to wind down its services in the UK and Cyprus.
As such, many global crypto exchanges are eyeing the Asian market due to regulatory uncertainties in the West. Gemini announced plans to focus on the Asia Pacific region, while Coinbase has been invited to set up an office in Hong Kong. With Hong Kong emerging as a growing crypto hub, more crypto platforms may assess their plans to enter the country.