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Coinbase, the prominent cryptocurrency exchange, is reportedly experiencing a blockage in Kazakhstan due to its alleged violation of the nation’s newly established laws regarding digital assets. Kazakhstan’s Ministry of Culture and Information has officially confirmed the restriction of access to the Coinbase website within the country, as reported by local media outlet Kursiv.
Regulatory Prohibition
The Ministry of Culture and Information stated,
“As per the Ministry’s statement to Kursiv, ” The Information Committee of the Ministry of Culture and Information received a request from the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan with a request to block the Internet resource www.coinbase.com, which violates paragraph 5 of Article 11 of the Law of the Republic of Kazakhstan ‘On Digital Assets in the Republic of Kazakhstan’.
The Information Committee of the Ministry of Culture and Information received a request from the Ministry of Digital Development, Innovation and Aerospace Industry of the Republic of Kazakhstan to block the Internet resource www.coinbase.com, which violates Clause 5 of Article 11 of the Law of the Republic of Kazakhstan ‘On Digital Assets in the Republic of Kazakhstan.’
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Prohibited Activities
Clause 5 of Article 11 within the “Digital Assets” law in Kazakhstan prohibits the issuance, circulation, and trading of digital currencies, as well as the operations of cryptocurrency exchanges dealing with such assets, except within the Astana International Financial Center (AIFC).
Regulatory Action Taken
The Ministry of Digital Development has accused Coinbase of non-compliance with these regulations and submitted a request to block the website through internet service providers across the country. Kursiv’s report notes,
“Coinbase was blocked under the provisions of the Communications Act, which obligates service providers to restrict access to sites featuring prohibited content.”
This development underscores Kazakhstan’s rigorous approach to the regulation of cryptocurrencies and exchanges operating within its jurisdiction. The country introduced its digital assets law earlier this year and established licensing requirements for cryptocurrency trading platforms following a surge in mining activities following China’s ban.
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Coinbase’s Response Unclear
As of now, Coinbase has not issued an official statement regarding the situation in Kazakhstan, leaving uncertainty regarding whether the company was actively offering services within the country before the block.
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