In an official statement, Kazakhstan’s Ministry of Culture and Information explained the recent website blocking of Coinbase, the second-largest cryptocurrency exchange by trading volume. According to the Ministry, Coinbase’s Bitcoin trading violates the nation’s digital asset laws, so it was restricted.
Article 11 of Kazakhstan’s Digital Asset Law Behind Coinbase Blocking
In a response to Kursiv, the Ministry of Information clarified that the Ministry of Digital Development, Innovation, and Aerospace Industry of Kazakhstan requested restrictions on official Coinbase site. The request was submitted by paragraph 5 of Article 11 of the Law of Kazakhstan, “On Digital Assets in the Republic of Kazakhstan.”
The fifth paragraph of Article 11 prohibits the issuance, circulation, and cryptocurrency exchange activities of unsecured digital assets outside the Astana International Financial Center (AIFC). Kazakhstan-licensed cryptocurrency exchanges include Binance, CaspianEx, Biteeu, ATAIX, Upbit, Xignal&MT, and Bybit. The Astana Financial Services Regulatory Committee (AFSA) issues these licenses for Astana International Financial Centre operations.
The Ministry of Digital Development blocked Coinbase per the Communications Act. Internet service providers must block access to websites that host banned content or act under this law.
Recent access restrictions do not only affect Coinbase. The Ministry of Information reported a momentary outage on the Interactive Brokers and NYMEX websites. Infractions in their activities prompted the restriction of these websites.
Financial Experts Question Kazakhstan’s Decision to Block Coinbase, Interactive Brokers, and NYMEX
Interactive Brokers’ website was added to Cybernadzor by the Agency for Regulation and Development of the Financial Market (ARFRDF) for alleged “financial pyramid and other fraudulent transactions.” Their website was briefly down. Since it traded Bitcoin and Ethereum futures outside the Astana International Financial Centre’s jurisdiction, NYMEX was restricted. NYMEX lacked accreditation from the Astana Financial Services Authority (AFSA), a specialized committee that regulates financial services in Astana.
After public pressure and financial expert discussions, Interactive Brokers and NYMEX were restored to full functionality. A formal appeal by the Financial Monitoring Agency prompted the Information Committee to restore access to www.interactivebrokers.com in Kazakhstan.
Kazakhstan’s ban on Coinbase, Interactive Brokers, and NYMEX has garnered attention and controversy. Financial experts and industry stakeholders are concerned about the Ministry of Information’s legal and infraction-based decisions. Access to some websites was restored later. This incident shows how complicated it is to regulate digital assets and cryptocurrency exchanges in Kazakhstan.
