Kazakhstan's Government Blocks Coinbase for Violating the Country's Digital Asset Law
Summary:
Kazakhstan's Ministry of Culture and Information has officially blocked local access to the Coinbase website, accusing it of violating the country's Digital Asset Law. By this legislation, enacted in February 2023, online currency entities need a national permit to operate, which is granted by the Astana International Financial Center (AIFC) authority. Difficulties began to surface in September, as substantial Kazakh investment firewall also obstructed access to other major international crypto exchange sites like Kraken.
The Coinbase online platform has been officially obstructed in Kazakhstan by the Ministry of Culture and Information. Since September, local Internet addresses in Kazakhstan have been denied access to the Coinbase site. A news report from local source Kursiv, dated November 7, revealed that the website lockdown was facilitated by a directive from the aforementioned Ministry. It was clarified to reporters that the Ministry of Digital Development, another governmental agency, was behind this order, accusing Coinbase of violating the country's Digital Asset Law. This legislation, instated in February 2023, prohibits the issuance and trade of online currencies as well as running an online currency exchange without a national permit. The prerequisite accreditation to run such an operation is granted by the Astana International Financial Center (AIFC) authority, a designated economic area in Kazakhstan. Related: Kazakhstan forms a regulator to oversee digital currency implementation. Companies like Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit, and Xignal&MT have been granted the essential approval by the AIFC Financial Services Authority. Initial indications of difficulties in accessing the Coinbase site emerged in September. Its was reported by the local Telegram channel Finance.kz that the "substantial Kazakh investment firewall" shut down not only Coinbase but also other major global crypto exchange sites like Kraken. The significant regulatory measures taken by Kazakhstan in the realm of cryptocurrency also extend to its mining sector, one of the world's largest. In October, eight primary cryptocurrency mining firms drafted an open letter to President Kassym-Jomart Tokayev, stating that the high cost of energy for miners has put the crypto-mining industry in a "highly troubling state". Magazine topic: Polygon's Sandeep Nailwal’s quotes from 'Slumdog Billionaire 2: Top 10... brings no satisfaction'.
Published At
11/7/2023 10:55:04 AM
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