Coinbase’s website was blocked by the Kazakh government because the exchange does not have a license to operate in the country.

Kazakhstan’s Ministry of Culture and Information recently blocked popular cryptocurrency exchange Coinbase and some online brokerage sites, including the New York Mercantile Exchange (NYMEX), local media reported Nov. 7.

These actions are based on Kazakhstan’s strict Law on Digital Assets, a comprehensive piece of legislation governing the issuance and circulation of digital assets in the country.

The Digital Assets Law was introduced to create a structured regulatory environment for the cryptocurrency industry and provide specific guidelines for the activities of online brokers.

Its main goal is to ensure that cryptocurrency trading activities comply with established regulatory parameters to promote a safe and controlled environment for digital asset transactions.

Coinbase has no license

Under the new rules, the issuance and circulation of unbacked digital assets in the country are prohibited unless they are conducted within the Astana International Financial Centre (AIFC).

Any company that wants to provide services related to digital assets must obtain a license from Astana’s financial regulator. Binance and Bybit are two cryptocurrency exchanges that have received licenses to operate in the country in recent months.

The report states that the government believes that Coinbase does not have a license to operate in the AIFC and is therefore in direct violation of regulations. The exchange’s website was subsequently blocked under the provisions of the Communications Act, which requires service providers to restrict access to websites containing prohibited content.

Coinbase’s case represents a significant development for the cryptocurrency industry, highlighting the importance of complying with local financial regulations.

As a major international cryptocurrency exchange, its restrictions reflect Kazakhstan’s commitment to enforcing its laws and regulations in this rapidly evolving industry.

NYMEX unblocked after suspension

In addition to Coinbase, the government has also blocked websites affiliated with Interactive Brokers and NYMEX. The Interactive Brokers review stems from concerns about potential fraudulent activity and financial pyramid schemes.

Meanwhile, the New York Mercantile Exchange faced restrictions for offering Bitcoin and Ethereum futures trading, activities that fall outside the jurisdiction of the international financial center. However, both companies’ websites were unblocked after the Financial Supervisory Authority filed a request for restoration.

Recent domestic regulatory actions have sparked discussion and concern in the financial community. Some experts have criticized the measures, arguing that they may be too broad or possibly wrong.

While Kazakhstan continues to explore its cryptocurrency and financial regulatory environment, the impact of these measures on digital asset exchanges and brokers operating within the country remains a subject of ongoing concern and discussion. #哈萨克斯坦  #监管