Kazakhstan, a major Bitcoin mining country, blocks access to local Coinbase website

The cryptocurrency mining giant Kazakhstan has announced the blocking of the cryptocurrency exchange Coinbase, and explained that the local authorities currently prohibit the circulation and issuance of unsecured digital assets, requiring cryptocurrency exchanges to apply to join the Astana International Financial Center (AIFC) in order to conduct relevant business locally.

Coinbase Banned by Kazakh Authorities

The website of Coinbase in Kazakhstan is currently blocked. Authorities stated that Coinbase has been conducting illegal cryptocurrency trading activities.

The Kazakh government announced that, according to digital asset regulations, Kazakhstan will prohibit the issuance and circulation of unsecured digital assets, as well as the operations of cryptocurrency exchanges dealing with such assets, except for digital asset exchanges operating in The Astana International Financial Centre (AIFC).

Therefore, all exchanges in Kazakhstan basically need to join AIFC to operate. However, joining requires obtaining a license and operating permit from the Astana Financial Services Authority (AFSA) of Kazakhstan. Cryptocurrency exchanges that have successfully obtained licenses and joined AIFC include Binance, CaspianEx, Biteeu, ATAIX, Upbit, Xignal&MT, and Bybit.

As Coinbase has not joined AIFC, unsecured digital assets within the exchange will be considered illegal information and business by the authorities.

Binance had already obtained a permanent license from AFSA last year, and Changpeng Zhao also met with the Kazakh President, successfully cooperating and announcing that the future Kazakh CBDC will be integrated with BNB Chain, establishing a foothold in the local market.

What is AIFC

The Astana International Financial Centre (AIFC) was established in 2018 as an international business and financial center with an independent legal system and arbitration jurisdiction, regulated by the Astana Financial Services Authority (AFSA) of Kazakhstan.

Kazakh and foreign companies that obtain operating licenses in AIFC can provide fintech services without immediately complying with all Kazakh regulatory requirements. Therefore, most companies in the cryptocurrency industry need to apply in order to conduct business locally.