Binance has decided to work with Kazakhstan’s government to foster crypto regulation. The exchange will provide advisory assistance to the government on crypto and blockchain development.
On Thursday, the crypto firm announced the MOU signing with the Ministry of Digital Development, Innovations, and Aerospace Industry. Both parties are willing to work together to foster crypto growth and development.
CZ Formulates Crypto Strategy With Kazakhstan’s Government
The founder of Binance, Changpeng Zhao, has met with Kassym-Jomart Tokayev and other high officials. The meeting was to discuss opportunities for crypto cooperation in the state.
According to their agreement, Binance will help develop the Astana International Financial Centre. This Centre is a financial hub in Nur-Sultan.
Bagdat Musin, head of digital development, noted that they plan to establish a blockchain academy.
Kazakhstan No Longer A mining Hub For Bitcoin
Despite the recent harsh regulations of Kazakhstan, the region accounts for 18% of BTC hashrate. This was according to data from Cambridge Centre for Alternative Finance.
Several miners have accused the Kazakhstani government of making mining difficult in the state. First, the government cut off the power supply for several weeks.
Afterwards, it increased the tariff on electricity, making it difficult for miners to pay. Recently, the taxation on crypto mining activities has almost crumbled activities.
In March 2021, Kazakhstan’s government announced the closure of over 106 crypto mining stations. The state forced 51 crypto miners to seize operations while the others shut down activities willingly.
Presently, Binance’s role as adviser to Kazakhstan is a welcome development. Last year, the crypto exchange was ridiculed by global regulators. Since the incident, the firm has taken compliance with crypto laws seriously.
It has also taken several steps to protect the rights and assets of investors. The firm has faced several attacks from cybercriminals. However, the Binance team was able to recover the lost funds.
As stated by Tokayev, Binance discussed its roadmap and vision for the state. The president noted that;
“We discussed establishing a blockchain-focused academy. This academy will help local talents in the Astana Hub to go global. Also, we plan to introduce a venture fund that will help crypto startups.”
Tokayev noted, “We believe Kazakhstan can serve as a national hub for major players in the crypto community.”
Kazakhstan is among the first nations globally to authorize crypto mining. As per Zhao’s report, Binance will help the country grow its local cryptocurrency community. Also, it will help to develop a blockchain ecosystem in Kazakhstan.
