Binance obtains full regulatory license. What does it mean for cryptocurrency market in Kazakhstan?
Cryptocurrency regulation in Kazakhstan is evolving. In a recent development, the Binance crypto exchange was permitted to apply for a full regulatory license from the Astana Financial Services Authority (AFSA). For Binance, this marks another step toward becoming a fully regulated cryptocurrency exchange in the country.
But is this case truly a game-changer for Kazakhstan’s cryptocurrency sector, and what benefits may regular users see? Let’s take a closer look.
Regulation of cryptocurrencies in Kazakhstan
First, it is important to understand that securing this license in Kazakhstan is just another box checked on Binance’s list of global achievements. The exchange has already obtained licenses in countries like France, Italy and Lithuania, so obtaining another one in Kazakhstan is nothing new for the company.
For the country, on the other hand, this deal may have far-reaching consequences. By granting a license to a big player in the market, such as Binance, Kazakhstan sends a positive signal to the international cryptocurrency community, indicating that cryptocurrency businesses are welcomed in the country.
It’s worth noting that Binance isn’t the only licensed cryptocurrency exchange in Kazakhstan. The market features both local — CaspianEx — and international platforms, such as Swiftex, Upbit and Bybit. This diverse landscape highlights the active development of the country’s cryptocurrency industry.
However, despite the presence of licenses and regulated exchange platforms, the role of cryptocurrencies within Kazakhstan’s economy is unclear. They are neither prohibited nor recognized as a payment instrument. Moreover, Kazakhstan’s Ministry of Internal Affairs has stated that cryptocurrency cannot be considered real money, leaving it in a legal gray area.
In addition, the scale of the cryptocurrency market in Kazakhstan is relatively small: only a million customers use cryptocurrencies out of the population of 20 million people. The figure is extremely low, raising doubts about whether Binance or any other exchange platforms will see a significant increase in their users after obtaining licenses.
In other words, crypto remains a niche product, and the Binance case won’t help to expand the role of cryptocurrencies in the day-to-day lives of most people in Kazakhstan.
Global trends and challenges
Even if other international exchange platforms start obtaining licenses in Kazakhstan, it still wouldn’t cause any big consequences for the global cryptocurrency industry. To establish a confident and transparent market, the international community has to develop generally accepted rules by applying joint efforts.
As just one country, Kazakhstan won’t be able to reshape the world’s approach toward cryptocurrency regulation. Local licenses are definitely useful for attracting attention, but they are not an essential tool for solving all the problems related to risks and uncertainty in a global cryptospace.
Cryptocurrency will remain limited until their clear and definitive status is established worldwide.
Development potential of the crypto industry
By giving licenses and creating favorable operating conditions, Kazakhstan has a chance to become a hub for the crypto companies that are weighing business opportunities in Central Asia and CIS member states.
But as long as global regulatory issues remain unresolved, we should not expect significant changes for ordinary cryptocurrency users.
Only coordinated international efforts can drive the development of the cryptocurrency market. While Kazakhstan has the potential to become a significant player in this process, it hasn’t reached that stage yet.
