Binance receives regulatory consent in Kazakhstan, moves closer to full licensing

Binance has received official approval from the Astana Financial Services Authority to operate as a fully regulated trading platform in Kazakhstan.

Cryptocurrency exchange Binance has moved a step closer to becoming Kazakhstan’s first fully regulated trading platform after receiving official approval for a full regulatory license from the Astana Financial Services Authority.

The approval for its local branch, Binance Kazakhstan, potentially makes it the first crypto exchange in the region to be fully licensed, the exchange said in a Sept. 6 announcement. The branch must undergo a series of external financial audits, obtain ISO certifications for its IT systems, and undergo a series of “internal and external audits and regulatory reviews,” the exchange said.

Following the granting of a full license, Binance Kazakhstan will be authorized to operate a virtual asset trading facility, manage principal investments, and provide custody services for cryptocurrencies, the press release said.

Kazakhstan has become an increasingly attractive market for crypto companies, particularly after China’s 2021 crackdown on crypto mining sent miners and digital asset companies to the region. However, access to the Kazakhstani market remains highly regulated, and not all currency exchanges are able to navigate the country’s strict regulatory environment.

In contrast to Binance’s successful path, US-based cryptocurrency exchange Coinbase was banned from operating in Kazakhstan in December 2023 for violating the country’s digital asset laws. The Ministry of Digital Development cited Coinbase’s trading of uninsured cryptocurrencies on its platform as a violation of Article 11, Clause 5 of the Kazakhstan Digital Assets Law, which restricts the circulation of such assets.