Binance Signs MoU with Kazakhstan Over Crypto Regulations

Globe’s largest cryptocurrency platform Binance has disclosed the signing of an MoU with Kazakhstan’s Digital Development Ministry and Aerospace Sector. The deal, inked on Thursday, will see the two parties’ interests align to foster the growth of the crypto space in Kazakhstan. 

Based on what correspondents have gathered, Binance will offer its assistance to the government to develop regulations for cryptocurrency. In addition, the exchange platform will blend the country’s financial system with the expanding virtual asset market. 

Binance to Help Kazakhstan Set Up a Blockchain Center and Venture Fund 

On Thursday, Binance Chief Changpeng Zhao arrived in Kazakhstan to meet with President Kassym-Jomart Tokayev and other prominent officials. The meeting was scheduled to discuss the opportunities abound in crypto and the long-term cooperation. 

At the meeting, CZ committed to a partnership with the Digital Development Ministry to develop Astana International Financial Center (AIFC). AIFC is the financial center in Nur-Sultan, the country’s capital. 

The Digital Development Ministry further disclosed that CZ discussed the prospects of setting up a venture fund and blockchain learning center. Tokayev says that the fund will raise cryptocurrency awareness among local talents in Nur-Sultan. 

According to the President, CZ had a great length of discussion with him and his officials. Kazakhstan is prime to lead the blockchain industry and become the HQ in the region, given its resources. 

“We have no doubts that Kazakhstan can become a major player in the crypto landscape and lead the region,” he said. 

X-raying Kazakhstan’s Crypto Mining Sector 

Kazakhstan is amongst the first few countries to make virtual currency mining official. The country became a prominent mining hub following China’s Proof-of-Work ban in June 2021.

The country achieved much success in its mining endeavors. Based on Cambridge Center for Alt. Fin., the nation accounted for about 18% of the global hash rate as of August last year. This put it in the second position behind the US. 

However, several negative news trailed its mining success. For example, several news outlets alleged that Kazakhstan was clamping down on bitcoin miners. 

The allegations had an element of truth because the government shut down over hundred mining operations in March 2021. In addition, it closed down over 50 miners. 

Binance will take up an advisory role in Kazakhstan’s quest for crypto evolution. It will signify a remarkable turnaround for the firm after a rough 2021 in the hands of regulatory agencies. 

Since the start of the year, Binance has become 100% compliant with law agencies and regulators. Undoubtedly, it will contribute to the development of the crypto ecosystem and blockchain space in Kazakhstan.