Kazakhstan Blocks Users From Accessing Coinbase
- Local reports claim that some users leverage VPN services to access Coinbase in Kazakhstan.
- Kazakhstan established crypto rules to regulate the growth of crypto mining activities in the country.
- Crypto exchanges such as Binance and Bitget have been licensed to operate in Kazakhstan.
Local news sources have confirmed that Kazakhstan has blocked crypto exchange Coinbase from operating in its country for violating newly enforced rules. Kazakhstan’s ministry of culture and information said it has blocked local IP addresses from using Coinbase since September.
Authorities claim that Coinbase violated the Digital Assets Law, which bans the issuance and trading of cryptocurrencies and crypto exchange activities without a national license. The ministry told local sources:
The Information Committee of the Ministry of Culture and Information received a request from the Ministry of Digital Development, Innovation, and Aerospace Industry of the Republic of Kazakhstan with a request to block the Internet resource www.coinbase.com, which violates paragraph 5 of Article 11 of the Law of the Republic of Kazakhstan ‘On Digital Assets in the Republic of Kazakhstan.
Kazakhstan saw a heavy surge in crypto mining activities, which was caused by China’s crackdown on crypto mining operations. In response to this spike, Kazakhstan’s authorities established policies to address crypto mining and exchange activities.
As per local sources, the Astana International Financial Center (AIFC), a growing spot for tech activities in Kazakhstan’s capital city, is the only area where unsecured digital assets and cryptocurrency exchange operations are allowed.
Crypto exchanges such as Bybit, Upbit, and Binance are authorized to operate in Kazakhstan after receiving an AIFC work permit from the Astana Financial Services Regulatory Committee.
Coinbase is not the first website to be blocked in Kazakhstan. The country’s government often blocks websites it considers to contain unlicensed content. However, Kazakhstan has shown flexibility in the past. Kazakhstan recently unblocked NYMEX and Interactive Brokers after blocking the companies for failing to secure a license.