The Binance cryptocurrency exchange will help the government of Kazakhstan in its efforts to regulate the country’s crypto space. The global coin exchange platform will also help integrate the national banking system with the expanding digital asset market.
Kazakhstan to cooperate with Binance on the development of its crypto sector
Binance, the world’s leading crypto exchange by trading volume, has signed a memorandum of understanding with the Ministry of Digital Development, Innovation and Aerospace Industry of Kazakhstan. The leading crypto platform and the department will collaborate in the crypto space.
The memorandum was signed during a visit by Binance CEO Changpeng Zhao to the Central Asian nation, crypto journal Forklog revealed, citing the company. In Kazakhstan, Zhao met with senior government officials, including the head of the Ministry of Digital Development Bagdat Musin and President Kassym-Jomart Tokayev.
According to the report, Binance will advise the country on cryptocurrency regulation. The Ministry of Digital Transformation and the exchange will also look for a solution that allows the integration of Kazakhstan’s banking infrastructure with the crypto market, the document details.
Additionally, Binance and the ministry have agreed to join forces to support the Astana International Financial Center (AIFC), the financial hub of the capital Nur-Sultan, formerly Astana. The two sides discussed the possibility of creating a blockchain-focused venture capital fund and academy “to help local talent from the Astana hub reach the global level,” Musin said.
Kazakhstan wants the AIFC to become a base for regulated cryptocurrency exchanges. Last summer, the country’s National Blockchain and Data Center Industry Association unveiled that domestic commercial banks will be allowed to open accounts for hub-registered crypto trading platforms as part of a pilot project.
After China cracked down on its crypto-mining industry last spring, Kazakhstan emerged as a major mining hotspot, but the influx of miners has been blamed for a growing energy deficit. To deal with this, the government plans to introduce differentiated tax rates according to the cost of the electrical energy consumed. The necessary amendments to the Tax Code were approved this week in the first reading in Mazhilis, the lower house of parliament.
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Binance To Advise Kazakhstan On Crypto Regulation – Bitcoin Regulation News
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