Kazakhstan agrees with Binance on creating regional settlement hub
ASTANA. Sept 7 (Interfax) - The National Bank of Kazakhstan (NBK) and the world's largest cryptocurrency exchange, Binance, have signed a memorandum of understanding providing for the development of a regional settlement hub of Binance Group in the country.
The memorandum was signed by NBK Deputy Governor Binur Zhalenov and the head of regional development and operational activities of the Binance global office, Kirill Khomyakov. The ceremony was attended by National Bank Governor Timur Suleimenov and Binance founder Changpeng Zhao.
According to the document, the parties intend to jointly develop a Binance settlement hub in Kazakhstan for servicing international payments and money transfers, including settlements for transactions with digital assets of clients of the global Binance Group from the countries of Central Asia, the Commonwealth of Independent States (CIS) and Eastern Europe.
Implementing the project involves creating a Binance Group organization and the necessary infrastructure in Kazakhstan, followed by obtaining a license from the National Bank to carry out activities as a first-category payment organization, which have direct access to the regulator's payment and financial infrastructure allowing them to operate without bank intermediation and provide a wide range of payment services to individuals and businesses.
According to the National Bank, the development of this direction became possible after legislative reforms in the regulation of digital asset circulation and the introduction of a new financial market entity - a first-category payment organization.
According to the regulator's assessment, the changes create additional opportunities for developing competition in the financial market, including through the expanding the presence of global companies and the emergence of new innovative payment and financial services.
Binance was one of the first international players to begin implementing a project under the new regulation.
The project's implementation will make it possible to transfer part of Binance's regional operations to Kazakhstan and service a significant portion of clients in the region through the Kazakh jurisdiction. The National Bank expects that this will contribute to attracting international technological competencies, developing the country's export potential in the field of digital financial services, and strengthening Kazakhstan's position as a regional center for digital financial technologies.
