Kazakhstan authorities have reportedly, blocked citizens from accessing the website of the Coinbase crypto exchange.
Since the beginning of 2023, governments worldwide have focused on licensing crypto service providers. This is being done to bring crypto under specific jurisdiction and tackle illicit activities such as money laundering and terror financing.
Also, after the FTX collapse, there is more stress on protecting the consumer from fraud.
Coinbase Violated Kazakhstan’s Law on Digital Assets: Reports
“Clause 5 of Article 11 of the Law on ‘Digital Assets’ states that the issue and circulation of unsecured digital assets, as well as the activities of crypto exchanges for such assets, are prohibited in Kazakhstan, with the exception of the territory of the Astana International Financial Center (AIFC).”
Companies need an AIFC license from the Astana Financial Service Regulatory Commission (AFSA) to operate in the country. In fact, in June 2023, AFSA granted permission to Binance to launch a regulated crypto exchange.
In 2023, there are approximately 1.48 million crypto users in Kazakhstan. The screenshot below shows that the crypto has a penetration rate of 7.61% in the Central Asian country. And it is expected to grow to 11.50% by 2027.
Hence, to capture this growing market, Coinbase needs to comply with the regulations. BeInCrypto has contacted Coinbase for a comment.
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content.