Coinbase has reportedly been blocked in Kazakhstan for allegedly violating new laws governing digital assets in the country.
According to local media outlet Kursiv, the Ministry of Culture and Information of Kazakhstan has officially confirmed that access to the Coinbase website has been restricted within the country's borders.
As per the Ministry's statement to Kursiv, "[translated] 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’."
Clause 5 of Article 11 of the Law on "Digital Assets" prohibits the issuance, circulation and trading of digital currencies, as well as the activities of crypto exchanges dealing in such assets outside of the Astana International Financial Center (AIFC).
The Ministry of Digital Development accused Coinbase of non-compliance with these regulations and sent a request to block the website across internet service providers in the country.
As per Kursiv's report, "Coinbase was blocked under the provisions of the Communications Act, which stipulates the obligation of providers to limit access to sites with prohibited information."
This incident highlights Kazakhstan's stringent approach to regulating cryptocurrencies and exchanges within its jurisdiction. The country enacted the digital assets law earlier this year and established licensing policies for crypto trading platforms after witnessing a surge in mining activities following China's ban. However, the licensing mandate has put global exchanges like Coinbase in a difficult position.
Coinbase is yet to issue an official statement addressing this development in Kazakhstan. It remains unclear if the company was formally offering services in the country before the block.