- Kazakhstan’s Law on Digital Assets was passed in February 2023.
- Cryptocurrency exchanges are illegal unless they have been granted a national license.
Coinbase, a prominent cryptocurrency exchange, has been blocked in the Republic of Kazakhstan, according to the Ministry of Culture and Information. According to a report in the country’s domestic media, this comes as the Kazakh government adopts a harsh regulatory posture against the cryptocurrency industry, citing the sector’s infringement of local laws.
However, the government’s decision to limit citizens’ ability to use these and other foreign cryptocurrency exchanges has prompted speculation about Kazakhstan’s stance on this new kind of investment.
Approval Mandatory
Kazakhstan’s government has lately made news for its attempts to limit accessibility to major crypto platforms, despite the country’s well-known and prolific crypto mining business. The Ministry of Culture and Information in Kazakhstan publicly acknowledged that it had restricted accessibility to the Coinbase site.
Kazakhstan’s Law on Digital Assets was passed in February 2023, therefore the ban was enforced in response to complaints that Coinbase was breaking the law.
While this regulation is in effect, cryptocurrency exchanges and the issue of digital currencies are illegal unless they have been granted a national license. Notably, national licenses to operate in Kazakhstan are issued by the Astana International Financial Center (AIFC), an exclusive economic zone in the country.
On the other hand, with the addition of four national security specialists to its staff, including former US Secretary of Defence Dr. Mark T. Esper, Coinbase has announced the expansion of its Global Advisory Council. This strategic shift by the industry’s preeminent cryptocurrency exchange comes as the industry faces continuing regulatory hurdles in the United States.
As part of its proactive strategy, Coinbase was recently authorized by the CFTC to facilitate consumer trading of cryptocurrency futures. Despite the company’s continuing lawsuit with the SEC for unregistered securities, this is a strategic achievement. With this expanded council, Coinbase hopes to get more institutionalized support for cryptocurrencies in the United States.
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