Coinbase Faces Obstacles in Kazakhstan: Government Blocks Access

<p>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. </p><p>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. </p><p>The move is part of Kazakhstan's broader strategy to
establish more stringent regulations in the cryptocurrency sector, impacting
not only <a href="https://www.financemagnates.com/tag/coinbase/" target="_blank" rel="follow">Coinbase</a> but other major international crypto exchanges as well.</p><p>Coinbase Impacted by New Restrictions in Kazakhstan</p><p>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 <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> allegedly
violated the provisions of the Law on Digital Assets. </p><p>Several cryptocurrency exchanges, including Binance,
Bybit, and Upbit, have already<a href="https://www.financemagnates.com/cryptocurrency/bybit-secures-preliminary-approval-to-operate-in-kazakhstan/" target="_blank" rel="follow"> received approval</a> 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.</p><p><a href="https://www.financemagnates.com/cryptocurrency/binance-enters-central-asia-with-launch-of-local-service-in-kazakhstan/" target="_blank" rel="follow">Binance partnered</a> 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.</p><p>Kazakhstan’s Stricter Crypto Regulations</p><p>Kazakhstan's approach to cryptocurrency <a href="https://www.financemagnates.com/terms/r/regulation/">regulation</a>
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,
Coindesk reported. </p><p>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.</p>

This article was written by Jared Kirui at www.financemagnates.com.