(Rejected) Kazakhstan Grants Binance Permanent License To Provide Digital Asset Services

The AIFC Financial Services Authority in Kazakhstan on October 6th granted Binance a permanent license to provide digital asset services in the country.

Yesterday, Binance announced it had been granted a permanent license to manage a digital asset platform and provide custody services at the Astana International Financial Center.

The license was granted to Binance after the crypto exchange put up numerous ‘memorandums’ of understanding (MoU) and an initial “in-principle” approval to operate in Kazakhstan. 

According to Binance, this newly granted permanent license gives it official rights as a regulated platform in the country. Asia Regional Head at Binance, Gleb Kostarev, stated that this is another step forward for Binance being a “compliance-focused exchange."

Binance expressed that the laying grounds for operations in Kazakhstan has since been established earlier this year when it signed its first MoU on May 25, and vowed to help push crypto adoption and regulation in Kazakhstan. Followed by a second on Oct. 3 to assist in fighting financial crime.

The granting of Binance a permanent license in Kazakhstan increases the country’s chance to participate in crypto-related opportunities in the future. 

Notably, this is not Kazakhstan's first approach toward the crypto industry. In June, the Ministry of Digital Development, Innovations and Aerospace Industry of Kazakhstan launched a program to allow crypto exchanges to open bank accounts and run legal transactions in the Astana International Finance Center.

Additionally, last week, it was reported by a local media, Informburo, that the Kazakhstan government would look into the conversion of cryptocurrencies to fiat in the Astana International Financial Centre (AIFC) if the demand increases.

Kazakhstan was also once known to be the perfect spot for crypto mining due to local energy prices. However, just last year, the country had power shortages causing some cryptocurrency mining firms to leave Kazakhstan and move to other nations.