Major Crypto Exchange Web Access Restricted in Kazakhstan Due to Contravention Clearances
Coinbase, internationally recognized as one of the leading cryptocurrency exchanges, has faced a severe setback in Kazakhstan due to local legislative restrictions. Allegedly infringing section 5 of Article 11 of the Digital Assets Law, the country’s official regulation governing cryptosecurities, has led to the ban of Coinbase’s online platform in the state. Kazakhstan’s Ministry of Culture and Information elaborated on this matter.
Coinbase, NYMEX, and More Receive the Boot as Kazakhstan Makes Regulatory Moves
The recent reports confirm the apparent blockage of Coinbase’s web portal in Kazakhstan territory. Additionally, global platforms such as the New York Mercantile Exchange (NYMEX) and Interactive Brokers weren’t exempt from this widespread crackdown. The Kazakh authorities justified the blockage, citing non-compliance with the specific clause within the “Digital Assets” law.
A correspondence from Kazakhstan’s Ministry of Culture and Information detailed:
In response to the request from the Ministry of Digital Development, Innovations, and Aerospace Industry of the Republic of Kazakhstan, actions were taken to prevent access to the internet asset www.coinbase.com. This decision is a result of the website’s violation of section 5 of Article 11 of the ‘Digital Assets’ Law of Kazakhstan.
The government and the National Bank of Kazakhstan have ramped up efforts to monitor and exert control over specific online finance platforms, allowing exceptions for websites operating within the Austana International Financial Centre (AIFC). Information provided by Kursiv News suggests that NYMEX suffered the hit due to the dealing with future trading in Bitcoin and Ethereum cryptocurrencies. This activity happens to fall outside the regulatory purview of the AIFC.
Problems aren’t sparing the Bitcoin miners of Kazakhstan as well. Operators licensed to mine Bitcoin in the region are reportedly grappling with regulatory issues, provoking them to urge the local government to reassess the taxation modus operandi concerning their industry. Key industry players have already started expressing their concerns over the hostile tax framework, with the potential to impact their operations within this Central Asian territory that also stretches into Europe.
We would love to know your thoughts on this recent crackdown on Coinbase, NYMEX, and others in Kazakhstan. Let’s discuss this further in the comments section.
Frequently asked Questions
1. What is the new crypto securities law enforced in Kazakhstan?
The new crypto securities law enforced in Kazakhstan is a regulation that imposes stricter rules and requirements on the trading and issuance of cryptocurrencies within the country.
2. How does the crypto securities law impact Coinbase in Kazakhstan?
As a result of the crypto securities law, Coinbase, a popular cryptocurrency exchange, has been blocked in Kazakhstan, preventing residents from accessing the platform and trading cryptocurrencies through it.
3. Can Kazakhstani citizens continue to trade cryptocurrencies using other platforms?
Yes, Kazakhstani citizens can still trade cryptocurrencies using other platforms that are not affected by the blockage imposed on Coinbase. There are various alternative exchanges available for them to continue their cryptocurrency transactions.
4. What are the main reasons behind Kazakhstan’s enforcement of the crypto securities law?
The main reasons behind Kazakhstan’s enforcement of the crypto securities law include protecting investors from fraudulent or risky cryptocurrency investments, ensuring compliance with anti-money laundering regulations, and fostering the development of a regulated and secure cryptocurrency market in the country.
5. Are there any plans to lift the blockage on Coinbase in Kazakhstan?
There is no official information available regarding the potential lifting of the blockage on Coinbase in Kazakhstan. The situation will depend on future developments, negotiations between Coinbase and Kazakhstani authorities, and potential adjustments to comply with the new crypto securities law.
6. How are cryptocurrency enthusiasts and businesses reacting to the blockage of Coinbase in Kazakhstan?
Cryptocurrency enthusiasts and businesses in Kazakhstan have expressed concerns about the blockage of Coinbase, as it limits their access to a reputable and widely-used cryptocurrency exchange platform. Some individuals and businesses are exploring alternative solutions or advocating for changes to the crypto securities law.
7. Is Kazakhstan the only country enforcing such strict crypto securities laws?
No, Kazakhstan is not the only country enforcing strict crypto securities laws. Several nations worldwide have implemented or are considering regulations to regulate and monitor cryptocurrency activities more closely. Each country’s approach may vary, but the trend towards increased scrutiny and regulation of the cryptocurrency industry is observable in multiple jurisdictions.