- Kazakhstan’s Astana Financial Services Authority (AFSA) obtained court injunctions against Coinbase, BingX, Bitcoin.com, Huobi Global (HTX), BitMart, and WEEX for operating without authorization within the Astana International Financial Centre (AIFC).
- The injunctions are limited to the AIFC jurisdiction and do not constitute a nationwide crypto ban across Kazakhstan, as clarified in a September 15 judgment by Justice Sir Stephen Richards.
- LBank, initially named in the proceedings, was removed from the order on September 18 after blocking access to its services in Kazakhstan and addressing AFSA’s concerns.
Kazakhstan’s AFSA Secures Court Injunctions Against Coinbase and Five Other Crypto Platforms Over Unauthorized AIFC Operations
Kazakhstan’s financial regulator, the Astana Financial Services Authority (AFSA), has obtained court orders restricting six major cryptocurrency platforms — Coinbase, BingX, Bitcoin.com, Huobi Global (HTX), BitMart, and WEEX — from offering or marketing unlicensed digital asset services within the Astana International Financial Centre (AIFC). The injunctions also prohibit these platforms from distributing mobile applications tied to those unauthorized services to users located within the centre, marking a significant enforcement action by one of Central Asia’s most active crypto regulatory bodies.
Scope of the Injunctions: AIFC Jurisdiction, Not a Nationwide Ban
Despite the breadth of the platforms named, the legal reach of the court orders is geographically and jurisdictionally defined. In a September 15 judgment, Justice Sir Stephen Richards made clear that the restrictions apply exclusively within the AIFC and to users located there. The Astana International Financial Centre is a financial hub situated in Kazakhstan’s capital that operates under its own distinct legal framework and regulatory authority, separate from Kazakhstan’s broader national regulatory system. Crypto firms wishing to offer services within the AIFC are required to obtain a licence from AFSA — a condition that the six named platforms had not fulfilled at the time the orders were issued.
Google and Apple Named as App-Store Operators; Separate Injunction Declined
The court’s orders extend in binding effect to Google and Apple in their capacities as app-store operators, given their role in distributing the mobile applications associated with the unlicensed platforms. However, the court stopped short of issuing a separate, standalone injunction against the two tech giants. Instead, the judgment indicated that AFSA should first engage in direct discussions with Google and Apple regarding the necessary steps required for compliance, suggesting a cooperative enforcement pathway before further legal measures are pursued against the app-store operators.
LBank Removed From Proceedings After Blocking Kazakhstan Access
LBank was among the platforms named in AFSA’s initial proceedings but was subsequently removed from the order on September 18. The regulator confirmed that LBank had addressed its concerns by blocking access to its services in Kazakhstan, demonstrating the kind of remedial action AFSA is prepared to accept in lieu of continued enforcement. The swift resolution of LBank’s case signals that the regulator is open to compliance-based exits from the proceedings, potentially setting a precedent for how the remaining five platforms may seek to resolve their situations.
Why This Matters
The AFSA enforcement actions underscore the growing seriousness with which special economic and financial zones are asserting independent regulatory authority over global crypto platforms. The AIFC’s self-contained legal framework — modelled in part on common law principles — gives it the legal tools to pursue injunctive relief against international firms operating digital asset services without proper authorisation. For crypto platforms with a global user base, this case highlights the risk of passively serving users in jurisdictions that require active licensing, even within sub-national financial zones. As regulators worldwide tighten crypto licensing regimes, the Coinbase and WEEX cases in particular may attract attention given their scale and global user reach. The outcome of AFSA’s ongoing discussions with Google and Apple could also set an important regional precedent for how app-store operators are held accountable in crypto licensing enforcement actions.
Frequently Asked Questions
Does the AFSA court order mean Coinbase and the other platforms are banned across all of Kazakhstan?
No. As Justice Sir Stephen Richards clarified in the September 15 judgment, the injunctions apply only within the Astana International Financial Centre (AIFC) and to users located there. The orders do not constitute a nationwide ban on crypto services across Kazakhstan as a whole.
Why was LBank removed from the AFSA enforcement proceedings?
LBank was removed from the court proceedings on September 18 after it took steps to address AFSA’s concerns, specifically by blocking access to its services in Kazakhstan. AFSA confirmed the removal following LBank’s remedial action.
Are Google and Apple required to remove the apps of the named platforms from their stores?
The court’s orders bind Google and Apple as app-store operators, but the court declined to issue a separate injunction directly against them. Instead, AFSA was directed to first discuss the necessary compliance steps with both companies before any further legal action against the app-store operators is considered.
