Binance, a cryptocurrency exchange, has inked a memorandum of understanding (MOU) with Kazakhstan’s government to help the country’s “virtual asset market development.” Binance and Kazakhstan’s Ministry of Digital Development, Innovations, and Aerospace Industry signed a Memorandum of Understanding on Wednesday during Changpang Zhao’s official visit. Binance CEO Changpeng Zhao met with Kazakh President Kassym-Jomart Tokayev, First Deputy Chief of Staff Timur Suleimenov, and Bagdat Musin, the country’s digital innovation minister.
Binance will help Kazakhstan build legislative rules and regulatory procedures for crypto assets as part of the framework. According to the official statement, the Ministry of Digital Growth, Innovations, and Aerospace Industry would “explore chances to integrate financial infrastructure into the cryptocurrency market” and support the development of blockchain technology.
Since absorbing Chinese mining capacity following Beijing’s comprehensive crackdown on the industry, Kazakhstan has emerged as a key player in the Bitcoin (BTC) market. Canaan and BTC.com, two Chinese Bitcoin mining companies, have relocated their operations to the nation to take advantage of low-cost, plentiful fuel and favorable legal conditions. On the other hand, Kazakhstan’s Bitcoin mining boom appears to have been unsustainable, as the flood of miners put a strain on the country’s energy supply, prompting the government to restrict miners’ access to electricity. The government declared earlier this month that all Bitcoin miners would be compelled to submit detailed data on their electricity consumption.