The Kazakh government has suspended the website of cryptocurrency exchange Coinbase for potential breaches of the country’s digital asset rules. On Tuesday, Kazakhstan’s Ministry of Culture and Information officials announced the ban.
This decision was made following the government’s enactment of the Law on Digital Assets in February 2023. The rule forbids the issuance and trading of digital currencies and crypto exchange activities in the nation without a license.
Kazakhstan, known for its large cryptocurrency mining sector, has extremely stringent cryptocurrency rules. Coinbase is not the only platform that is subject to these restrictions.
Previously, the government suspended the website of the New York Mercantile Exchange (NYMEX) for permitting trading of bitcoin futures outside the territory of the AIFC without receiving work permission from the Astana Financial Services Regulatory Committee (AFSA).
The Astana International Financial Centre (AIFC) is an independent regulator formed under the Constitutional Statute to supervise financial services and associated activities in the AIFC, a special economic zone in Kazakhstan.
Globally, regulations in the cryptocurrency business are tightening. Coinbase announced the addition of four national security experts to its Global Advisory Council on Tuesday, November 7, in response to the increased regulatory scrutiny surrounding the cryptocurrency industry. These experts include Mark Esper, former U.S. Secretary of Defense; Stephanie Murphy, former U.S. representative, policy expert, and businesswoman; Frances Townsend, former Counterterrorism and Homeland Security Advisor to President George Bush; and David Urban, who has previously worked for the Department of Homeland Security.
With these four new members, Coinbase will have more support as it makes strategic decisions and deals with a changing global cryptocurrency market.