Recently, Binance 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 work together 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. In Kazakhstan, Zhao met with high-ranking government officials, including the head of the digital development ministry Bagdat Musin and President Kassym-Jomart Tokayev.
Binance will advise the country on the regulation of cryptocurrencies according to the report. Besides that, the Ministry of Digital Transformation and the exchange will also seek a solution to integrate Kazakhstan’s banking infrastructure with the crypto market.
Furthermore, in support of the Astana International Financial Centre (AIFC) the financial hub in the capital city Nur-Sultan, formerly Astana, Binance and the ministry have agreed to collaborate. “To help local talent from the Astana Hub reach the global level,” both sides have discussed the possibility of creating a blockchain-focused venture fund and an academy, Musin said.
Kazakhstan hopes AIFC to become a base for regulated cryptocurrency exchanges. As part of a pilot project, the country’s National Association of Blockchain and Data Center Industry unveiled last summer that domestic commercial banks will be allowed to open accounts for crypto trading platforms registered at the hub.
Kazakhstan has become a major mining hotspot after China imposed a ban on its crypto mining industry last spring, but the influx of miners has been blamed for a growing power deficit. The government plans to introduce differentiated tax rates depending on the cost of the consumed electrical energy to deal with the issue. In the Mazhilis, the lower house of parliament, the necessary revisions to the Tax Code were approved this week on first reading.