Kazakhstan blocked access to 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 control 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.
The Committee of Information under the 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 approvals.
Binance partnered with a local bank in Kazakhstan to
facilitate fiat transfers, trading, and custody services, as well as currency
conversion in June. Binance’s engagement goes beyond just providing
cryptocurrency services. The exchange has actively supported 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 regulation
has 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,
Coinbase reported.
The growing presence of Bitcoin miners in the
Central Asian nation 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 the energy consumption of crypto mining
operations.
Kazakhstan blocked access to 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 control 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.
The Committee of Information under the 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 approvals.
Binance partnered with a local bank in Kazakhstan to
facilitate fiat transfers, trading, and custody services, as well as currency
conversion in June. Binance’s engagement goes beyond just providing
cryptocurrency services. The exchange has actively supported 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 regulation
has 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,
Coinbase reported.
The growing presence of Bitcoin miners in the
Central Asian nation 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 the energy consumption of crypto mining
operations.
