Bitfinex Security Token Platform Goes Live in Kazakhstan

Major global cryptocurrency exchange Bitfinex is finally moving forward with its security token platform (STO) in Kazakhstan and opening its first day of trading.

Bitfinex Securities, Bitfinex’s blockchain-based investment platform, will officially launch on Tuesday, the company’s representatives announced to Coin-Crypto.

Announced in September 2021, the new STO platform will be regulated within Kazakhstan’s national financial center known as the Astana International Financial Center (AIFC). Bitfinex Securities specifically operates out of a special economic zone in Kazakhstan, which has an independent legal system, according to Paolo Ardoino, chief technology officer of Bitfinex Securities. The platform is not available to citizens or residents of countries such as Canada and the United States.

According to the announcement, Bitfinex Securities will debut trading with the Blockstream Mining Note (BMN), a security token that offers qualified non-US investors an option to mine Bitcoin or invest in BTC mining stocks using BMN’s associated hash rate. The token will be issued on Bitcoin’s Liquid side chain and will trade against BTC and the US dollar, allowing accredited investors to gain exposure to Bitcoin mining.

“This underscores a pent-up demand among accredited investors for the opportunity to gain exposure to Bitcoin mining made available through BMN’s enterprise-grade facilities,” Ardoino told Coin-Crypto. He added that the company will continue to work closely with local regulators and with companies looking to raise capital on the STO platform.

Related: Kazakhstan Likely To Lose Leadership In Bitcoin Hash Rate With Next Index Update

As previously reported by Coin-Crypto, the Bitcoin mining industry has apparently been fading somewhat in Kazakhstan lately as the local government ended multiple mining operations and proposed energy price hikes as well as new crypto mining taxes.

In August last year, Kazakhstan was one of the world’s largest BTC mining regions in terms of hash rate distribution, accounting for more than 18% of the global BTC hash rate, second only to the US, according to the Cambridge Bitcoin Electricity Consumption Index.

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