Binance Secures Approval to Operate Regulated Exchange Platform in Kazakhstan
Binance has, in recent days, sought to increase its presence in the Asia Pacific region amid the regulatory uncertainty witnessed within the West. Binance is leading other crypto platforms in shifting focus beyond the US, citing the increased crackdown by regulators.
Binance Unveiling Digital Asset Platform
A statement released by Binance on Tuesday, June 20, unveiled the approval of its digital asset platform in Kazakhstan. The leading crypto exchange by transaction volume stated in a presser attended by representatives from the country’s banking industry.
Binance spokesperson revisited the in-principle approval to operate within Kazakhstan in August 2022. He added that Binance would secure a permanent license two months later in October. The license allows Binance to provide digital asset custodial and platform services within the Astana International Financial Center (AIFC). It marks the approval of Binance Kazakhstan from the AIFC Financial Services Authority.
The new platform will enable Binance to offer several crypto and fiat-oriented services accessible to Kazakhstani users. The users will access conversion services besides custody, deposit, and fiat withdrawal.
Binance Partners with Freedom Finance Bank for kazakhstan Exchange
The press release identified Freedom Finance Bank as a strategic partner to ease fiat funds transfer. The banking services will enable users of Binance digital asset exchange to move funds seamlessly into their accounts. The spokesperson identified that Kazakhstani users could choose from bank cards or transfers as the two fiat channels to execute withdrawals and deposits through the Freedom Finance Bank.
The expansion of Binance into Kazakhstan coincides with the time it is battling 13 charges unveiled by the SEC in early June. The lawsuit alleges Binance Holdings and Binance.US of commingling customers’ funds besides offering unregistered securities. SEC accuses Binance chief executive Changpeng Zhao of steering the deceptive business. The suit reignites its days in court, beginning in March when the Commodity Futures Trading Commission (CFTC) sued Binance.
Binance Battling Regulatory Pushback
Binance’s struggles are reminiscent of those faced by Kraken, Bittrex, and recently Coinbase, alleging it blatantly violated the US securities laws. Besides the US, Binance is confronting regulatory pushback from the France regulators. A recent report indicates that French regulators opened investigations early last year, claiming it orchestrated aggravated money laundering.
Binance move to the Asian market comes days after announcing it would exit Cyprus citing a need to refocus on the mature European markets. In addition, Binance would also declare it is exiting the Netherlands after failing to secure approval from the Dutch regulator. The regulator disapproved Binance’s application citing noncompliance with the provisions of anti-money laundering law.
While Binance is leaving the Dutch market for noncompliance, a recent update by the UK Financial Conduct Authority (FCA) confirms its exit from the country. The statement illustrates that Binance applied to cancel the permits it recently secured. The move complies with the guidelines provided by FCA. Unlike Cyprus, Binance applied to cancel the permits granted for the UK subsidiary that remained unutilized since FCA granted them.
Binance stated that it would prioritize compliance with the recently approved Markets in Crypto Assets (MiCA) regulations by the European Union. Nonetheless, speculation emerged with European regulators teaming up with the SEC to investigate Binance.
Binance Expands into Asian Market
Binance joins other global crypto projects caught in the exodus from troubled US regulatory environments into the Asian market. Winklevoss’ Gemini unveiled its strategic focus to expand within the Asia Pacific region. As such, it confirmed expanding the staff within the Singapore division. Also, it plans to engage additional staff who will work within the soon-to-be-established engineering unit in India.
Hong Kong is positioning itself as a leading crypto hub in the region. It is attracting crypto platforms to assess the viability of starting operations. A rare incident involved pro-crypto legislators inviting Coinbase and firms freeing the troubled US jurisdiction into the Asia Pacific.
Editorial credit: Sergei Elagin / Shutterstock.com
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