Binance, the largest cryptocurrency exchange in the world, has signed a memorandum of understanding (MoU) with Kazakhstan. The MoU will help the nation fight financial crime in the region. With support from the president, Binance, partnered with the Financial Monitoring Agency (FMA) of Kazakhstan.
Together, they will develop a safe virtual asset market in the country. Here are the details.
Is Kazakhstan Ready To Legalize Crypto?
The US State Department has categorized Kazakhstan as a country of concern concerning money laundering and financial crimes. But does crypto solve this issue? Blockchain technology is known for its transparency and high security, but on the other hand, it is also known for its anonymity. To some extent, it is easier to track money launders on the blockchain due to the nature of the system.
Binance’s regional head for the Asia region, Gleb Kostarev, confirmed that one of the main reasons for the move was Kazakhstan’s pro-crypto stance:
“The government of Kazakhstan has significantly adjusted the relevant legislation, legitimizing activities in the field of mining and circulation of cryptocurrencies. We see great potential in the country for further growth of the industry, and as leaders, we will be happy to contribute to this.”Gleb Kostarev – Regional Head, Binance Asia
Besides, Binance is one of the largest crypto exchanges in the world, and having them become part of the Financial Service Providers in Kazakhstan ensures that they can keep track of and monitor any suspicious crypto activity in the country.
In essence, Binance is now the largest gateway into the crypto world for Kazakhstanis.
The news also means that Kazakhstan is ready to adopt crypto. You dont bring in crypto oversight if you intend on banning the asset class. On a larger scale, this MoU is a win for blockchain and bitcoin adoption. Kazakhstan has become one in a growing list of countries to legalize cryptocurrencies.
Kazakhstan is also one of the leading nations in terms of Bitcoin mining. In addition, the region of central Asia has provided favorable conditions for crypto growth in terms of lenient crypto regulations.