Binance to Advise Kazakhstan on Crypto Regulations. What do you think of this move?

Binance, the world's largest cryptocurrency exchange by trading volume and the trading place of wide variety of cryptos including Solana, Concordium, Ethereum and so on, has signed an agreement with Kazakhstan's Ministry of Digital Development, Innovation, and Aerospace Industry. In the crypto space, the major crypto platform and the department will collaborate.

The memorandum was signed during Binance CEO Changpeng Zhao's visit to the Central Asian country, according to the crypto news outlet Forklog, which cited the company. Zhao met with top government officials in Kazakhstan, including the head of the digital development ministry, Bagdat Musin, and President Kassym-Jomart Tokayev.

According to the report, Binance will advise the country on cryptocurrency regulation. The Ministry of Digital Transformation and the exchange will also look for a solution that will allow Kazakhstan's banking infrastructure to be integrated with the cryptocurrency market, the document details.

Furthermore, Binance and the Ministry of Finance have agreed to collaborate in support of the Astana International Financial Centre (AIFC), the financial hub in Nur-Sultan, formerly Astana. The two parties have discussed the creation of a blockchain-focused venture fund and an academy "to help local talent from the Astana Hub reach the global level," according to Musin.

Kazakhstan wishes for AIFC to serve as a hub for regulated cryptocurrency exchanges. As part of a pilot project, the country's National Association of Blockchain and Data Center Industry announced last summer that domestic commercial banks will be allowed to open accounts for crypto trading platforms registered at the hub.

Kazakhstan became a major mining hotspot after China cracked down on its crypto mining industry last spring, but the influx of miners has been blamed for a growing power deficit.

To address the issue, the government intends to implement differentiated tax rates based on the cost of consumed electrical energy. The necessary changes to the Tax Code were approved on first reading in the Mazhilis, the lower house of parliament, this week.