In a notable regulatory victory for Binance, the world’s largest cryptocurrency exchange by trading volume, the company announced that it had received approval to operate in Kazakhstan after facing ongoing regulatory hurdles, particularly in the United States.
Binance Celebrates Regulatory Win In Kazakhstan
The approval, confirmed through a recent blog post by the exchange, signifies a key step forward for Binance Kazakhstan as it secures a full regulatory license from the Astana Financial Services Authority (AFSA), positioning itself to become the foremost fully regulated Digital Asset Trading Facility (DATF) in the nation.
Upon completing the license, Binance Kazakhstan can run a virtual assets trading platform, engage in principal investment activities, and provide custody services for virtual assets. This will enable Binance Kazakhstan to expand its services and cater to the local digital asset community better.
Vishal Sacheendran, Binance’s Head of Regional Markets, expressed optimism about the preliminary approval, emphasizing the organization’s commitment to adherence to compliance and security in the country. Sacheendran remarked:
We eagerly anticipate the receipt of the full license and are eager to continue serving our users in Kazakhstan, while also contributing to the advancement of the local digital asset ecosystem.
However, amidst these regulatory advancements, the exchange faces challenges as its former CEO, Changpeng Zhao (CZ), has been permanently banned from overseeing the company following a settlement with US authorities that led to his resignation.
Lifetime Ban On Changpeng Zhao
Binance’s current CEO, Richard Teng, confirmed the lifetime ban imposed on Zhao and clarified the restrictions on his future involvement following his impending release from prison on September 29. While Zhao retains his shareholder rights, he is prohibited from participating in day-to-day operational activities.
Despite the ban, Zhao’s influence remains a topic of discussion. Teng noted that as a shareholder, he still can influence company performance, including the potential to nominate new board members or a CEO.
Zhao was previously the sole board member of Binance, but as Bitcoinist reported, the company has since expanded its board to seven members. The terms of the plea deal stipulate that Zhao is prohibited from any future involvement in managing the business, but the exact nature of his shareholder rights remains somewhat ambiguous.
Legal experts such as Daniel Richman of Columbia Law School and a former US prosecutor have pointed out that the language in the Department of Justice (DOJ) settlement does not explicitly prevent Zhao from returning to a leadership role in the future.
However, according to Richman, this slight ambiguity leaves open the possibility that, depending on future developments, provisions could be made to prevent his return.
Zhao has stated that he has no intention of returning to a CEO role and plans to focus on investing in blockchain, artificial intelligence (AI), and biotechnology companies. “That life no longer exists for me,” he wrote in a letter to the court in April, marking a significant shift in his career path.
At the time of writing, the exchange’s native token, BNB, is trading at $500, down 2.2% in the last 24 hours amid the continued decline of the broader market led by Bitcoin (BTC).
Featured image from Shutterstock, chart from TradingView.com