In a recent development, one of the world’s leading cryptocurrency platforms, Coinbase, finds itself embroiled in a legal dispute in Kazakhstan, leading to a suspension of its services within the country. The cause of this disruption is a clear violation of Kazakhstan’s digital asset law, which was implemented earlier this year.
The aforementioned law strictly prohibits cryptocurrency companies from engaging in the issuance, circulation, or offering of unsecured digital assets beyond the boundaries of the Astana International Financial Center. Initial reports regarding the blocking of Coinbase’s services in Kazakhstan were brought to light by the local media outlet, Kursiv.
Coinbase, like many other digital asset enterprises operating in the present year, has grappled with a constantly evolving global regulatory landscape. Countries worldwide are now refining their regulatory frameworks to manage the burgeoning cryptocurrency industry. In this case, Coinbase’s breach of a recently enacted law has led to the suspension of its operations within Kazakhstan.
The specific legislation in question mandates that “unsecured digital assets” cannot be issued or circulated, and digital asset exchanges are restricted from operating outside the confines of Kazakhstan’s financial center. The Kazakhstani government has reportedly communicated the violation to Coinbase, which is alleged to have contravened “paragraph 5 of Article 111 of the Law of the Republic of Kazakhstan on Digital Assets.”
Kazakhstan swiftly moved to enact comprehensive digital asset regulations across the industry, encompassing both cryptocurrency exchanges and mining activities. This decision was triggered by a surge in digital asset participation within the country, primarily resulting from the increased restrictions on digital asset activities in China.
