Cryptocurrency exchange Binance will assist the government of Kazakhstan in efforts to regulate the country’s crypto space. The global coin trading platform will also help with the integration of the domestic banking system with the expanding digital assets 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 Kazakhstan’s Ministry of Digital Development, Innovation and Aerospace Industry. The major crypto platform and the department will collaborate in the crypto space.
The memorandum was signed during a visit of Binance CEO Changpeng Zhao to the Central Asian nation, the crypto news outlet Forklog revealed, quoting the company. In Kazakhstan, Zhao met with high-ranking government officials, including the head of the digital development ministry Bagdat Musin and President Kassym-Jomart Tokayev.
According to the report, Binance will advise the country on the regulation of cryptocurrencies. The Ministry of Digital Transformation and the exchange will also seek a solution allowing the integration of Kazakhstan’s banking infrastructure with the crypto market, the document details.
Furthermore, Binance and the ministry have agreed to join forces in support of the Astana International Financial Center (AIFC), the financial hub in the capital city Nur-Sultan, formerly Astana. The two sides have discussed the possibility of creating a blockchain-focused venture fund and an academy “to help local talent from the Astana Hub reach the global level,” Musin said.
Kazakhstan wants AIFC to become a base for regulated cryptocurrency exchanges. Last summer, the country’s National Association of Blockchain and Data Center Industry unveiled that domestic commercial banks will be permitted to open accounts for crypto trading platforms registered at the hub as part of a pilot project.
After China cracked down on its crypto mining industry last spring, Kazakhstan became a major mining hotspot, but the influx of miners has been blamed for a growing power deficit. To deal with the issue, the government plans to introduce differentiated tax rates depending on the cost of the consumed electrical energy. The necessary amendments to the Tax Code were approved this week on first reading in the Mazhilis, the lower house of parliament.
Do you expect other crypto companies to help Kazakhstan with crypto regulations? Tell us in the comments section below.
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.