The Republic of Kazakhstan’s Ministry of Culture and Information has officially blocked access to the major cryptocurrency exchange Coinbase, according to local media reports.
The Ministry of Information, stated, “The Information Committee of the Ministry of Culture and Information received a request from the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan with a request to block the Internet resource www.coinbase.com, which violates paragraph 5 of Article 11 of the Law of the Republic of Kazakhstan On Digital Assets in the Republic of Kazakhstan.”
The Clause 5 of Article 11 of the Law on “Digital Assets” states that the issue and circulation of unsecured digital assets, as well as the activities of crypto exchanges for such assets, are prohibited in Kazakhstan.
This move is part of Kazakhstan’s strict regulatory approach to the cryptocurrency sector, citing violations of local laws, particularly the Law on Digital Assets enacted in February 2023.
This law requires national licenses for digital currency issuance, trading, and crypto exchanges, granted by the Astana International Financial Center (AIFC).
Many other international crypto exchanges, including Binance, Bybit, and more, have acquired these licenses, allowing them to operate in Kazakhstan. Coinbase’s ban is due to concerns of non-compliance with this law.
Additionally, Interactive Brokers and the New York Mercantile Exchange (NYMEX) faced restrictions for violating the country’s legal framework, with Interactive Brokers temporarily added to a financial misconduct database.
While Kazakhstan’s actions have caused concern among local and foreign companies, the government’s approach to cryptocurrencies and foreign financial service providers remains unclear, creating uncertainty in the crypto industry within the region.
This crackdown has spurred discussions about Kazakhstan’s regulatory stance in the evolving digital landscape.
Also Read: Kazakhstan Police Bust Fake Crypto Exchange, Arrest Mastermind
