The cryptocurrency exchange Binance has signed a memorandum of understanding with the government of Kazakhstan to boost the “development of the virtual asset market” in the Central Asian country.
The signing of the memorandum of understanding, between Binance and the Ministry of Digital Development, Innovations and the Aerospace Industry of Kazakhstan, took place on Wednesday during Changpeng Zhao’s official visit to the country. The Binance CEO met with Kazakh President Kassym-Jomart Tokayev, First Deputy Chief of Staff Timur Suleimenov, and Bagdat Musin, the minister who oversees the country’s digital innovation strategy.
Under this agreement, Binance will help Kazakhstan develop legislative guidelines and regulatory policies for crypto assets. The Ministry of Digital Development, Innovations and the Aerospace Industry will also “look for opportunities to integrate banking infrastructure into the cryptocurrency market” and will facilitate the development of Blockchain technology, according to the official statement.
President of the Republic of Kazakhstan Kassym-Jomart Tokayev meets CEO of Binance Changpeng Zhao https://t.co/K4MsXM646M
— CZ Binance (@cz_binance) May 25, 2022
President of the Republic of Kazakhstan Kassym-Jomart Tokayev meets with Binance CEO Changpeng Zhao
Kazakhstan has become a key player in the Bitcoin (BTC) economy since it absorbed Chinese mining capacity following Beijing’s crackdown on the sector. Chinese Bitcoin mining companies Canaan and BTC.com have moved their operations to the country to take advantage of cheap and abundant fuel as well as favorable regulatory conditions.
However, the Bitcoin mining boom in Kazakhstan appears to have been unsustainable, as the influx of miners strained the country’s energy supply and prompted the government to reduce its access to energy. Earlier this month, the government announced that all Bitcoin miners would have to submit comprehensive reports on their electricity usage.
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