Kazakhstan Imposes Buying Limits on Crypto Retail Investors – Bitcoin News Regulatory – News Couple

Kazakhstan Imposes Buying Limits on Crypto Retail Investors – Bitcoin News Regulatory

The authorities in Kazakhstan have imposed restrictions on the amount of cryptocurrency that individual investors can buy on local exchanges. Officials explained the decision, noting the need to protect individuals from exposure to risks associated with digital financial assets.

Investors in Kazakhstan can buy up to $1,000 in cryptocurrency per month without declaring income

Kazakhstan has adopted restrictions on cryptocurrency purchases made by retail investors on exchanges registered with the Astana International Financial Center (AIFC), local business news portal Capital reports, citing the Astana Financial Services Authority (AFSA).

The publication notes that relevant amendments to the rules governing activities in the financial center in Nur-Sultan were proposed by the AIFC’s Financial Services Regulatory Commission in July and approved in late October. Commenting on the changes, the AFSA confirmed:

The limits are set to protect the interests of retail investors, as transactions with digital assets are associated with high risks, up to the complete loss of the invested capital.

Power has introduced two limits. Without confirmation of their income and assets, retail investors will be allowed to receive up to $1,000 per month in cryptocurrency. If they want to buy more coins, they will have to declare their income and assets. In this case, non-professional investors will be able to spend up to 10% of their annual income, or 5% of their assets, but not more than $100,000.

The AFSA also noted that a roadmap for the development of the crypto market in Kazakhstan has been approved and the authority is now taking steps to implement it by 2022. A pilot project to open cryptocurrency exchanges in the financial center of the capital will at the end of this year, officials revealed and explained:

Throughout 2022, cryptocurrency exchanges will operate in test mode. At the end of the pilot project, if necessary, changes will be made to national legislation, as well as to AIFC laws.

According to Arman Konushbaev, Vice President of the Blockchain Association of Developers and Users of Blockchain Technology, imposing restrictions on non-professional investors is a global practice. He added that the restrictions will protect them from financial losses when investing in cryptocurrencies, including from various fraud schemes.

However, Konushbaev also noted that there are few options for retail investors to buy and sell cryptocurrencies outside of licensed exchanges operating in the Astana International Financial Center. He explained that deals can be agreed upon through Telegram channels and Whatsapp chats, for example, or via decentralized trading platforms.

Do you expect Kazakhstan to develop a booming cryptocurrency market? Tell us in the comments section below.

Tags in this story

AFSA, AIFC, Assets, Astana, Crypto, crypto exchange, Crypto Investments, Cryptocurrencies, Cryptocurrency, Financial Authority, Financial Center, Financial Center, Income, Kazakhstan, Borders, Non-Professional Investors, Regulations, Restrictions, Retail Investors, Rules

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