Kazakhstan’s National Bank signed a memorandum of understanding with Binance on September 4, putting the exchange on track to apply for a Category 1 non-bank Payment Service Provider license under a newly created regulatory framework designed to bridge crypto and fiat transactions.
Deputy Chairman Binur Zhalenov signed the agreement as part of a broader push that included three separate MoUs inked the same day, according to CryptoBriefing. The other two involve cooperation with Kazakhstan’s Ministry of Artificial Intelligence and Digital Development and the Astana International Financial Centre.
Zhalenov described the Category 1 PSP license in a LinkedIn post as essentially a payments bank offering a full range of payment capabilities without deposit-taking or lending. He added that Binance’s ambition goes beyond Kazakhstan, aiming to use the country as a base to serve Commonwealth of Independent States markets and beyond.
The MoU itself does not constitute regulatory approval. Binance has not yet been granted the new authorization and must still go through the formal application process. CZ Zhao amplified Zhalenov’s announcement on X, but did not sign the Kazakhstan MoU personally.
What the license enables
The Category 1 PSP license allows Binance to build infrastructure for converting between digital assets and fiat currency, processing payments, and facilitating transactions across merchant and cross-border networks. What it explicitly does not permit is deposit-taking or lending, keeping the license strictly payments-focused.
The framework was designed specifically for digital asset companies, taking a different approach from most Western regulators. Rather than forcing crypto exchanges into existing banking or securities categories, Kazakhstan created a purpose-built PSP license for the sector. That deliberate design choice suggests regulators understand that crypto payment infrastructure requires its own set of rules rather than a retrofit of old banking ones.
The discussions also touched on something potentially more consequential: exploring a local stablecoin. While still at an early exploratory stage, a Kazakhstan-issued stablecoin could serve as the connective tissue between the country’s fiat system and the broader digital asset ecosystem, particularly for cross-border transactions with neighboring CIS nations.
A stablecoin would also give Kazakhstan a tool for settling trade flows across Central Asia without relying entirely on the US dollar, a point that matters in a region where Russia, China, and Turkey all compete for financial influence. Whether the stablecoin discussions advance may determine how far this regional ambition reaches.
Building on existing infrastructure
This MoU is not Binance’s first move in Kazakhstan. The exchange received a Digital Asset Trading Facility license through Binance Kazakhstan in September 2024, giving it a regulated foothold in the country. That distinction became tangible in July 2026 when Binance launched Binance Pay in partnership with Alatau City Bank. The service went live across 5,000 point-of-sale terminals nationwide, allowing users to spend crypto at physical merchants for the first time in the Central Asian market.
The three simultaneous MoUs suggest a coordinated government strategy rather than a one-off deal, with multiple ministries and regulatory bodies aligned on the same digital finance agenda. The Ministry of Artificial Intelligence and Digital Development confirmed the agreements through its official government channel.
Kazakhstan has been positioning itself as a crypto-friendly jurisdiction since 2022, when it introduced a licensing regime for digital asset mining and trading. The AIFC, modeled partly on Dubai’s financial free zone structure, has served as the institutional framework for bringing Binance inside the tent. The country’s cheap energy and proximity to Chinese mining operations that relocated after Beijing’s 2021 ban made it an early hub for crypto activity in Central Asia.
Regional ambitions
Binance’s push into the country appears designed to use it as a launchpad for expansion across the CIS region, a collection of post-Soviet states with a combined population exceeding 240 million people. By positioning Kazakhstan as a regional hub, the exchange aims to route crypto-to-fiat payment services across Central Asia and neighboring markets.
The licensing framework itself is notable because it signals that Kazakhstan is moving from framework-building to implementation. Formalizing a payments-specific license, rather than a broad exchange license, could let regulators maintain close oversight while still allowing crypto rails into everyday payments.
Analysts tracking Kazakhstan’s digital asset policy suggest this shift could serve as a model for other Central Asian countries looking to integrate crypto into their payment systems without creating the regulatory gaps that have plagued more permissive jurisdictions.
BNB, Binance’s native token, traded near $607 on Thursday, up 2.4% over 24 hours with a market capitalization around $82.8 billion. There is no confirmed link between the price move and the MoU announcement; broader market conditions may be driving the swing.
For Binance, the Kazakhstan deal represents yet another step in its ongoing global regulatory normalization strategy. After years of enforcement actions and leadership turnover, the exchange has been building licensed operations in multiple jurisdictions including France, Dubai, and Japan. A PSP license from Kazakhstan’s National Bank, if ultimately granted, would give Binance a regulatory payments foothold in a region that most Western crypto firms have largely ignored.
The signing also comes at a moment when Binance is actively seeking to demonstrate its compliance credentials across multiple regulatory fronts at the same time. The exchange has been working to rebuild trust with regulators following the 2023 settlement with US authorities, and deals like the Kazakhstan MoU show that its international expansion strategy remains active despite ongoing scrutiny in some markets.
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