Kazakhstan has enforced a block on the renowned cryptocurrency platform, Coinbase, due to a breach of its new digital asset regulations. Reports from Kursiv, a local news source, highlight that the blockage is a direct result of Coinbase’s non-compliance with a recently enacted law within the nation.
Rapid Response to Regulatory Breach
The specific regulation in question prohibits the issuance, trading, and circulation of unbacked digital assets outside the Astana International Financial Center. This swift action comes as part of Kazakhstan’s broader strategy to tightly control the burgeoning digital currency market within its borders. The law, Article 111, paragraph 5, is clear in its restriction of these activities, and Coinbase reportedly fell afoul of these rules.
Global Regulatory Hurdles for Coinbase
This year has seen Coinbase, along with other digital asset companies, grappling with varying regulatory frameworks across the globe. Each country is increasingly defining its stance on digital assets, leading to a complex landscape for exchanges to navigate. For Coinbase, the violation in Kazakhstan is the latest in a series of regulatory challenges.
Kazakhstan’s Proactive Digital Asset Legislation
Kazakhstan has been proactive in implementing digital asset laws, covering both exchanges and mining activities. The nation’s quick adoption of such regulations is partly a response to the spillover of digital asset activities from China, where restrictions have tightened. This has led to a significant uptick in cryptocurrency-related operations within Kazakhstan, prompting the government to take decisive regulatory action.