Kazakhstan Blocks Access to Coinbase
The government of Kazakhstan has blocked access to Coinbase in the country, citing violations of a new digital assets law. According to local media reports, the Ministry of Culture and Information explained that the move was related to cryptocurrency trading on the exchange that directly conflicts with the law on digital assets.
Paragraph 5 of Article 11 of the Law on Digital Assets prohibits the issuance and circulation of unsecured digital assets and activities of crypto exchanges in Kazakhstan, except within the Astana International Financial Center territory. The AIFC sets forth an independent legal framework based on the law of England and Wales and is also drafted to complement the regulations of the Dubai International Financial Centre.
Binance, Upbit and Bybit Licensed
Crypto exchanges Binance, Upbit, and Bybit are licensed to operate in Kazakhstan via an AIFC work permit issued by the Astana Financial Services Regulatory Committee. The block on Coinbase falls under Kazakhstanβs Communications Act, which requires providers to restrict access to sites with prohibited content.
However, the government has shown some flexibility in the past by unblocking Interactive Brokers and NYMEX after similar restrictions against the companies without an AIFC work permit issued. The Ministry of Information did not explain the reasons for restoring their access.
Blocking Reported Since September
Todayβs confirmation of Coinbase’s block from the Kazakh government follows earlier reports suggesting that most websites of foreign brokers and crypto exchanges from Kazakhstan do not open without using a VPN β including Coinbase, Kraken, and other large exchanges. Coinbase also faces ongoing regulatory challenges in the U.S., with a lawsuit filed by the Securities and Exchange Commission alleging securities law violations.
Hot Take: Impact on Crypto Exchanges in Kazakhstan
The blocking of Coinbase in Kazakhstan due to violations of digital assets laws highlights the regulatory challenges faced by crypto exchanges operating in different countries. This move could impact investor access to certain platforms and influence future decisions for crypto exchange operations within Kazakhstan.
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