Kazakhstan Blocks Coinbase, Citing Digital Asset Law

blockchain.news:

Kazakhstan's Ministry of Culture and Information has clarified its decision to block the global cryptocurrency exchange, Coinbase, within the nation's borders. The ministry asserts that the trading of cryptocurrencies on Coinbase is in direct violation of the Kazakhstani law on Digital Assets. This clarification was provided in response to an inquiry from «Kursiv,» following a request from the Ministry of Digital Development, Innovations, and Aerospace Industry. The request was made to block access to Coinbase, which contravened section 5 of Article 11 of the country’s Digital Assets Law.

This particular section of the law prohibits the issuance and trading of unsecured digital assets, as well as the operations of cryptocurrency exchanges dealing with such assets, outside of the Astana International Financial Centre (AIFC). Only a select group of cryptocurrency exchanges, including Binance and Bybit among others, are licensed to operate in Kazakhstan, with the AIFC's Committee for Regulation of Financial Services being the authorizing body.

The move to block Coinbase was in accordance with the nation's communication laws that oblige providers to limit access to websites containing prohibited content. This has raised questions about the regulatory environment for digital assets within Kazakhstan and the implications for global cryptocurrency operations.

The Ministry also addressed the earlier blocks imposed on the websites of Interactive Brokers and the New York Mercantile Exchange (NYMEX), both of which were subsequently lifted. The restoration of access to these sites occurred after significant feedback from the financial community and a request from the Financial Monitoring Agency to resume access to