The cryptocurrency exchange Coinbase has been blocked in Kazakhstan. The country’s authorities accuse Coinbase Kazakhstan to offer crypto services without prior legal authorization and in violation of the country’s laws. Meanwhile, rival CEXs (Centralized Exchanges) such as Binance and Bybit continue their activities in Kazakhstan…
Coinbase Kazakhstan blocked nationwide
Residents of Kazakhstan can no longer access Coinbase the world’s second-largest cryptocurrency exchange.
Indeed, the Ministry of Information of the Republic of Kazakhstan has announced the blocking of this crypto exchange platform. The restriction follows a request from the country’s Ministry of Digital Development, Innovation and Aerospace Industry.
Nonetheless, the Ministry of Information gave the reasons for the block.
According to him, Coinbase violates paragraph 5 of Article 11 of the Law of the Republic of Kazakhstan “On Digital Assets in the Republic of Kazakhstan”. This legal provision stipulates, among other things, that the issuance and circulation of unsecured digital assets as well as crypto trading activities in Kazakhstan are permitted only at the Astana International Financial Center. That’s right, Coinbase offers these crypto-related services outside the center.
Coinbase is not the only technology company blocked by the Kazakh authorities. Interactive Brokers and New York Mercantile Exchange (NYMEX) suffered a similar fate.
Coinbase CEX competitors with a legal presence in Kazakhstan
Whereas Coinbase is no longer accessible in Kazakhstan, but its main competitors continue to operate in the country!
In fact, several crypto exchanges have legal licenses to operate in Kazakhstan. These include Binance, Bybit, CaspianEx, Biteeu, ATAIX or Upbit. Residents of Kazakhstan will therefore have no particular problem accessing the cryptocurrency.
Remember that Binance is a powerful ally of the Kazakstan authorities in the deployment of its CBDC (Central Bank Digital Currency). Indeed, the digital currency of the Central Bank of Kazakhstan is integrated on the BNB Chain, i.e. the blockchain network managed by Binance.
Conclusion
Kazakshtan is known in particular as a fertile ground for cryptocurrency mining.
Following the ban on mining in China, the country has been a haven for many miners. Up to 18% of Bitcoin’s hashrate is supplied by miners in Kazakhstan, second only to the USA. However, the country is losing its pro-mining crypto reputation and all the associated benefits. Due to excessive tax burdens several crypto mining companies have had to flee the country. So beware of scaring off crypto exchanges too.
However, situated between China and Russia, this state is geographically well positioned, particularly for companies wishing to escape the prohibitions in place in the land of the rising sun. Do you think Kazakhstan has potential in the future of the global blockchain industry?
I dream of a world where every citizen has total control over themselves, including their finances. I believe that Bitcoin is one of the tools that will achieve this revolution. Since 2019, I am learning about this cryptocurrency and spreading the word around.
