Kazakhstan blocked access to the cryptocurrency exchange Coinbase’s website for alleged violations of the country’s laws on digital assets. The officials from Kazakhstan’s Ministry of Culture and Information confirmed the restriction today (Tuesday), according to the local media outlet, Kursiv.
This decision followed the government's enforcement of the Law on Digital Assets, which became effective in February 2023. The regulation aims to restrict the issuance and trading of digital currencies and crypto exchange activities without a national license.
The move is part of Kazakhstan's broader strategy to establish more stringent regulations in the cryptocurrency sector, impacting not only Coinbase but other major international crypto exchanges as well.
Coinbase Impacted by New Restrictions in Kazakhstan
The Committee of Information under Kazakhstan's Ministry of Culture and Information blocked Coinbase based on a request by the Ministry of Digital Development, Innovations, and Aerospace Industry. The crypto exchange allegedly violated the provisions of the Law on Digital Assets.
Several cryptocurrency exchanges, including Binance, Bybit, and Upbit, have already received approval from the Astana Financial Services Authority (AFSA). Bybit was granted an 'in-principle' license in May, allowing the exchange to operate a digital asset trading facility and provide custody services at the AFSA. However, Coinbase, along with other exchanges like Kraken, has faced difficulties in gaining such approval.
Binance partnered with a local bank in Kazakhstan to facilitate fiat transfers, trading, and custody services, as well as currency conversion in June. The exchange's engagement goes beyond just providing cryptocurrency services. Binance is actively supporting Kazakhstan in the development of a legislative framework and a regulatory policy for crypto assets.
Kazakhstan’s Stricter Crypto Regulations
Kazakhstan's approach to cryptocurrency regulationhas been notably stringent, with a particular focus on its mining sector. The country boasts one of the world's largest cryptocurrency mining industries. In February, President Kassym-Jomart Tokayev approved legislation aimed at restricting the energy consumption of domestic cryptocurrency miners in Kazakhstan, Coindesk reported.
The growing presence of Bitcoin miners in the Central Asian country has placed a considerable burden on its power infrastructure, prompting the government to address the issue. While Kazakhstan remains keen on nurturing its crypto ecosystem, it has decided to implement stricter regulations to manage energy consumption.
This article was written by Jared Kirui at www.financemagnates.com.
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