AIFC Court Issues Injunctions Against Coinbase and Other Platforms for Unlicensed Crypto Services

This ruling underscores the tightening regulatory landscape for digital asset services, affecting user access and platform operations.

• On September 15, 2026, the AIFC Court issued default injunctions against Coinbase and five other platforms for unlicensed operations.
• The Astana Financial Services Authority (AFSA) secured these orders after the platforms failed to respond to prior warnings about unauthorized services.
• The injunctions prohibit these platforms from offering digital asset services within the AIFC and extend to app distribution via major app stores.

• The AIFC operates under a unique regulatory framework that is separate from Kazakhstan's broader financial regulations, allowing for distinct enforcement actions.
• AFSA had previously warned over 20 platforms about compliance requirements, leading to some voluntarily restricting access while others ignored the warnings.
• The ruling reflects a growing trend in global financial hubs to regulate digital assets more stringently, similar to measures seen in Dubai's DIFC.

The AIFC Court's injunctions against Coinbase and other platforms represent a significant enforcement action within Kazakhstan's burgeoning digital asset landscape. The Astana Financial Services Authority (AFSA) initiated this legal process after multiple warnings went unheeded by the platforms involved. The court's decision, led by Justice Sir Stephen Richards, emphasizes the importance of regulatory compliance in the rapidly evolving digital asset sector.

The AIFC operates under a common-law framework, distinct from the oversight of Kazakhstan's National Bank. This separation allows the AIFC to enforce its regulations independently, which is crucial for maintaining the integrity of its financial ecosystem. The AFSA's proactive stance began in 2025, when it issued warnings to over 20 crypto platforms about the necessity of obtaining licenses under the Law on Digital Assets. This initial outreach resulted in nine platforms voluntarily restricting access and seven expressing interest in compliance, demonstrating a willingness among some operators to adhere to regulatory standards.

However, the platforms that failed to respond to AFSA's warnings faced legal repercussions. The court's injunctions not only bar these platforms from providing unlicensed services but also restrict their ability to market and distribute related mobile applications. This is particularly significant as it extends to major app stores like Apple and Google, which will be required to enforce geographic restrictions on these platforms.

The total costs awarded against the operators amount to KZT 1,995,479.95, highlighting the financial implications of non-compliance. The ruling aims to protect licensed participants within the AIFC, ensuring that they do not bear the compliance costs associated with unregulated competition. This move is indicative of a broader trend where regulatory bodies are increasingly focused on safeguarding user interests and maintaining market integrity.

The implications of this ruling extend beyond Kazakhstan. As global financial centers like Dubai's DIFC adopt similar regulatory frameworks, the AIFC's actions may serve as a blueprint for other jurisdictions grappling with the challenges posed by unlicensed digital asset services. The enforcement of these injunctions is a clear signal to the market that regulatory compliance is not optional, and platforms must prioritize adherence to local laws to operate effectively.

• Digital asset users in Kazakhstan: Limited access to popular platforms may affect trading and investment opportunities.
• Crypto platforms operating in the AIFC: Increased scrutiny and potential legal challenges for non-compliance with local regulations.
• App developers and distributors: Changes in app availability could impact user engagement and revenue streams.

• Compliance actions by other platforms: Watch for how other digital asset services respond to this ruling and whether they seek to comply or withdraw from the market.
• Regulatory developments in the AIFC: Keep an eye on further enforcement actions by AFSA and any new regulations that may emerge in response to this ruling.
• Market reactions: Observe how the digital asset market in Kazakhstan adjusts to these restrictions and whether licensed platforms see increased user engagement.