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Monday, March 27, 2023

Binance to Advise Kazakhstan on Crypto Regulations

Binance to Advise Kazakhstan on Crypto Regulations – Binance, the world’s largest cryptocurrency exchange by trading volume, has agreed to work with Kazakhstan’s Ministry of Digital Development, Innovation, and Aerospace Industry on a memorandum of understanding. In the crypto space, the leading crypto platform and the department will collaborate.

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According to the crypto news outlet Forklog, the memorandum was signed during Binance CEO Changpeng Zhao’s visit to the Central Asian country. Zhao visited with high-ranking government officials in Kazakhstan, including Bagdat Musin, the head of the digital development ministry, and President Kassym-Jomart Tokayev.

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Binance will assist the country on cryptocurrency regulation, according to the report. According to the document, the Ministry of Digital Transformation and the exchange will also look for a way to integrate Kazakhstan’s banking infrastructure with the crypto market.

Binance and the ministry have also committed to work together to support the Astana International Financial Centre (AIFC), the financial hub of Nur-Sultan, previously Astana.

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According to Musin, the two sides have discussed the potential of establishing a blockchain-focused venture fund and an academy “to help local talent from the Astana Hub reach the global level.”

Kazakhstan hopes that AIFC would serve as a hub for regulated cryptocurrency exchanges. As part of a pilot initiative, the country’s National Association of Blockchain and Data Center Industry said last summer that domestic commercial banks will be allowed to create accounts for crypto trading platforms registered at the hub.

Also Read: IMF Chief Begs Investors Not to Shun All Crypto After the Collapse of LUNA

Kazakhstan became a significant mining hotspot after China cracked down on its crypto mining business last spring, but the inflow of miners has been blamed for a rising power deficit.

To tackle the issues, the government intends to implement varying tax rates based on the cost of electrical energy consumed. The necessary changes to the Tax Code were passed on first reading in the Mazhilis, parliament’s lower chamber, this week.

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