Several cryptocurrency platforms have moved their attention to the Asia Pacific region amid growing regulatory uncertainties in the West.
The establishment of a regulated digital asset platform in Kazakhstan by Binance, a global cryptocurrency exchange, marks the company’s entry into the Central Asian market. At a press conference on June 20th that was attended by leaders from Binance Kazakhstan and the financial sector, the launch was formally announced.
In order to conduct business in Kazakhstan, Binance received preliminary clearance in August and a permanent license from the AIFC Financial Services Authority in October of the previous year. Binance is now permitted to offer a platform for digital assets and custodial services at the Astana International Financial Center thanks to the license.
For local users, the newly opened platform in Kazakhstan will provide a wide range of services, including cryptocurrency conversion and exchange, fiat deposit and withdrawal, and custody of digital assets.
Binance and Kazakhstan’s Freedom Finance Bank have teamed to make financial services more accessible to users of the digital asset platform. Users can now send fiat money to their platform accounts using bank cards or bank transfers through Freedom Finance Bank thanks to this agreement.
At a time when the exchange is encountering regulatory difficulties in the US and other European nations, Binance is expanding into Kazakhstan. The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) both have lawsuits against the exchange pending.
Other international crypto exchanges are also considering potential in the region, so Binance’s decision to enter the Asian market in the face of regulatory uncertainty is not unusual. For instance, Gemini has stated that it will concentrate on the Asia Pacific region, adding to its employees in Singapore and building an engineering division in India.
Many cryptocurrency platforms, including Binance and Coinbase, have taken notice of Hong Kong’s rise as a burgeoning crypto hub. Legislators in Hong Kong have welcomed these platforms and encouraged them to open up headquarters and activities there.
Cryptocurrency exchanges are looking into new markets and areas where they can operate under more benevolent regulations as regulatory circumstances change. Binance and other exchanges are strategically responding to the shifting regulatory environment by expanding into Kazakhstan and the larger Asian market.