Cryptocurrency exchange Binance has signed a memorandum of understanding, or MOU, with the government of Kazakhstan to bolster “virtual asset market development” in the central Asian country.
The signing of the MOU, which is between Binance and Kazakhstan’s Ministry of Digital Development, Innovations and Aerospace Industry, took place on Wednesday during Changpang 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 overseeing the country’s digital innovation strategy.
Under the framework, Binance will assist Kazakhstan in developing legislative guidelines and regulatory policies for crypto assets. The Ministry of Digital Development, Innovations and Aerospace Industry will also “seek opportunities to integrate banking infrastructure within the cryptocurrency market” and facilitate the development of blockchain technology, according to the official statement.
Kazakhstan has emerged as a pivotal player in the Bitcoin (BTC) economy since absorbing Chinese mining capacity following Beijing’s wholesale crackdown on the industry. Chinese Bitcoin mining companies Canaan and BTC.com have moved their operations to the country to capitalize on cheap, abundant fuel, as well as favorable regulatory conditions.
However, Kazakhstan’s Bitcoin mining surge appears to have been unsustainable, as the influx of miners strained the country’s energy supply and prompted the government to reduce their access to power. Earlier this month, the government announced that all Bitcoin miners would be required to submit comprehensive reports on their power consumption.