Binance Kazakhstan Becomes the Region's First Fully Licensed Crypto Exchange

Binance, the world's largest cryptocurrency exchange, has received consent to operate in Kazakhstan.

Binance, the world’s largest cryptocurrency exchange by trading volume, has secured a license to operate in Kazakhstan, making it the first fully licensed crypto exchange in the Central Asian country.

According to a blog post on the Binance website, the exchange has passed several external financial audits and received ISO certifications for its IT systems.

Binance Kazakhstan also underwent internal audits and regulatory inspections to ensure compliance with the country’s legal framework.

Upon obtaining the full license, Binance Kazakhstan will be permitted to engage in various cryptocurrency activities, including operating a virtual asset trading platform, managing investments, and providing custody services for digital assets.

The license from the Astana Financial Services Authority (AFSA) also serves to enhance Binance’s credibility as a top crypto marketplace and attests to its alignment with international regulatory standards.

As Binance continues to expand into new markets, its success in securing a license in Kazakhstan may serve as a model for future licensing efforts in other countries.

Binance’s Global Footprint and Legal Challenges

Despite its rapid global expansion, Binance has encountered regulatory challenges in several countries, including South Africa.

However, the company is attempting to adapt its operations to the evolving legal landscape.

Recently, Binance Bahrain announced that it will offer derivative products to South African customers, as the company aims to comply with the country’s legal requirements.

Meanwhile, the trial of Binance’s executive Tigran Gambaryan is set to begin in Nigeria, following his arrest and arraignment by the Economic and Financial Crimes Commission (EFCC).

Additionally, the ongoing legal battle between Binance and the United States Securities and Exchange Commission (SEC) continues to unfold.

In a significant development, about 10 attorneys representing Changpeng ‘CZ’ Zhao in the case have withdrawn.

Despite these challenges, Binance aspires to meet the standards set in its operating areas and has appointed Grant Thornton as its accounting and tax advisor.

Binance Ex-CEO's Era Ends With a Lifetime Ban

Binance co-founder Changpeng Zhao had initiated the exchange’s push into Kazakhstan in 2021.

However, his leadership period at the company culminated in his arrest and imprisonment in the United States.

Zhao was indicted for failing to do enough to combat money laundering at the exchange, among other offenses.

In response to the charges, Zhao stepped down from his role as chief executive officer in November 2023 and agreed not to work in any management capacity at the exchange. This effectively barred him from managing Binance for life.

Despite the ban, Zhao remains Binance’s largest shareholder, giving him substantial influence over the company's direction.

The exchange's board has also expanded from one director to seven, including Zhao, in a move aimed at enhancing the company’s governance.

The US Department of Justice has assigned two external agents to monitor Binance’s business and enforce the agreement.

Zhao's sentence is set to end this month, following his confinement at the Federal Correctional Institution in Lompoc, California, since early December.

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