The Ministry of Culture and Information of Kazakhstan Blocks Access to Coinbase
The Ministry of Culture and Information of the Republic of Kazakhstan has officially confirmed that it has blocked access to the Coinbase website in the country. This action has been taken since at least September, with local IP addresses being blocked from accessing Coinbase.
Violation of Digital Assets Law
According to a report from local news outlet Kursiv, the Ministry of Culture and Information issued an order to block access to the Coinbase website. The request for this action came from another government body, the Ministry of Digital Development, which accused Coinbase of violating the Law on Digital Assets.
The Law on Digital Assets, which was enacted in February 2023, prohibits the issuance and trading of digital currencies and crypto exchange operations without a national license. Approval to operate is granted by the authority of the Astana International Financial Center (AIFC), a special economic zone in Kazakhstan.
Approved Crypto Exchanges
So far, several crypto exchanges including Binance, Bybit, CaspianEx, Biteeu, ATAIX, Upbit, and Xignal&MT have been approved by the Astana Financial Services Authority, which regulates the AIFC.
Access Issues with Major Exchanges
In September, reports emerged about difficulties accessing not only Coinbase but also Kraken and other major international crypto exchanges. Local media Finance.kz reported that the “great Kazakh investment firewall” was blocking access to these platforms.
Kazakhstan’s Regulatory Approach
Kazakhstan has adopted strict regulations regarding cryptocurrencies, including its mining sector which is one of the largest globally. In October, eight major cryptocurrency mining operators wrote an open letter to President Kassym-Jomart Tokayev, expressing concerns about the high energy prices for miners and the challenging situation faced by the crypto-mining industry.
Hot Take: Kazakhstan Blocks Coinbase Access Over Digital Assets Law Violation
The Ministry of Culture and Information in Kazakhstan has officially confirmed the blocking of Coinbase’s website due to alleged violations of the country’s Law on Digital Assets. This move is part of Kazakhstan’s stringent regulatory approach to cryptocurrencies, which extends to its mining sector as well. While several crypto exchanges have obtained approval from the Astana Financial Services Authority, Coinbase remains blocked along with other major international exchanges. The actions taken by Kazakhstan reflect its efforts to enforce national licensing requirements and maintain control over digital currency operations within its borders.
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