Kazakhstan Government Confirms Blockage of Coinbase Over Regulatory Breaches
Summary:
Kazakhstan's Ministry of Culture and Information has confirmed the blocking of cryptocurrency trading platform Coinbase. The move follows a directive from the Ministry of Digital Development, which accused Coinbase of breaching the Law on Digital Assets, implemented in February 2023. The law bans the operation of digital currency trading and exchange platforms without a national licence. Other significant global crypto exchanges are also affected by the country's stringent regulatory approach toward the crypto industry, especially its globally important mining sector.
Kazakhstan's Ministry of Culture and Information has verified reports of blocking Coinbase's website within the nation's boundaries. Internet users in the country have been unable to access the Coinbase site since at least September. Reporting on November 7, local media source Kursiv disclosed that the blocking action was a directive from the Ministry of Culture and Information, instigated by a request from yet another governmental department, the Ministry of Digital Development. The latter had accused Coinbase of breaching the Law on Digital Assets.
Instituted in February 2023, the Law on Digital Assets prohibits issuing and trading of digital currencies and operations of crypto exchanges without a license granted by the national government. This initial consent to conduct business is provided by the Astana International Financial Center (AIFC), a distinctive economic jurisdiction within Kazakhstan.
In connection with this, Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit, and Xignal&MT are cryptocurrency platforms that have gained authorization by the Astana Financial Services Authority, which exercises regulatory control over the AIFC.
The first indications of difficulties in accessing the Coinbase website emerged in September when local Telegram media group Finance.kz reported that the stringent "Kazakh investment firewall" also impeded access to Kraken and other leading global crypto exchanges.
Kazakhstan has adopted a strict regulatory posture towards cryptocurrency, particularly touching its mining sector—a globally significant industry. In October, eight prominent cryptocoin mining entities wrote an open letter to President Kassym-Jomart Tokayev, raising concerns about the challenging conditions of the mining industry, aggravated by high energy costs for miners.
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Published At
11/7/2023 10:55:00 AM
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