Kazakhstan Government Blocks Access to Coinbase Website
As of the beginning of 2023, governments worldwide have been focusing on licensing crypto service providers to bring them under specific jurisdiction and tackle illicit activities such as money laundering and terror financing. Following the collapse of FTX, there is a heightened emphasis on protecting consumers from fraud.
Coinbase Violated Kazakhstan’s Law on Digital Assets
According to the Kazakhstan-based publication Kursiv, the Ministry of Information has blocked citizens’ access to the official website of Coinbase because the exchange violated Kazakhstan’s laws on digital assets. The law prohibits the issue and circulation of unsecured digital assets, as well as the activities of crypto exchanges for such assets, with the exception of the territory of the Astana International Financial Center (AIFC).
Companies operating in Kazakhstan must obtain an AIFC license from the Astana Financial Service Regulatory Commission (AFSA) to operate legally in the country. Binance was granted permission to launch a regulated crypto exchange in June 2023 after receiving an in-principle approval in August 2022.
7.61% Crypto Penetration Rate in Kazakhstan
In 2023, there are approximately 1.48 million crypto users in Kazakhstan, with a penetration rate of 7.61%. This is expected to grow to 11.50% by 2027, making it a rapidly growing market for cryptocurrency adoption.
Capturing the Growing Market
To capture this growing market, Coinbase needs to comply with the regulations set forth by Kazakhstan’s government. BeInCrypto has reached out to Coinbase for a comment on this matter.
Kazakhstan’s decision to block access to Coinbase’s website reflects the challenges that crypto exchanges face when navigating different regulatory environments around the world. As cryptocurrency adoption continues to grow, exchanges will need to adapt and comply with evolving regulations to remain operational and tap into new markets.
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