Fun

Kazakhstan Imposes Purchase Limits on Retail Crypto Investors

News Feed - 2021-11-05 08:11:07

Kazakhstan Imposes Purchase Limits on Retail Crypto Investors


Authorities in Kazakhstan have introduced restrictions on the amounts of cryptocurrency retail investors can buy on local exchanges. Officials explained the decision citing the need to protect private individuals from exposure to the risks associated with digital financial assets. Investors in Kazakhstan Can Buy up to $1,000 in Crypto a Month Without Declaring Income


Kazakhstan has adopted limits for crypto purchases made by retail investors on the exchanges registered at the Astana International Financial Centre (AIFC), the local business news portal Capital reported, quoting the Astana Financial Services Authority (AFSA).


The publication notes that the respective amendments to the rules governing activities at the financial hub in Nur-Sultan were proposed by AIFC’s Financial Services Regulatory Committee in July and adopted in late October. Commenting on the changes, AFSA emphasized: The limits are introduced to protect the interests of retail investors, since transactions with digital assets are associated with high risks, up to a complete loss of invested capital.


The authority has introduced two limits. Without confirming their income and assets, retail investors will be allowed to acquire up to $1,000 a month in cryptocurrency. If they want to purchase more coins they will have to declare their income and assets. In this case, the 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 further 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 for the opening of cryptocurrency exchanges at the financial center in the capital city will be launched toward the end of this year, officials revealed and elaborated: Throughout 2022, crypto exchanges will operate in test mode. At the end of the pilot project, if necessary, changes will be made to the national legislation, as well as to the AIFC acts.


According to Arman Konushpaev, vice president of the Blockchainkz Association of Developers and Users of Blockchain Technology, imposing limits on non-professional investors is a global practice. The restrictions will protect them from financial losses when investing in cryptocurrency, including from various fraud schemes, he added.


However, Konushpaev also remarked that there are a few options for retail investors to buy and sell cryptocurrencies outside the authorized exchanges operating at the Astana International Financial Centre. Deals can be agreed upon through Telegram channels and Whatsapp chats, for example, or via decentralized trading platforms, he explained.


Do you expect Kazakhstan to develop a thriving cryptocurrency market? Tell us in the comments section below. Indian Payments Giant Paytm Could Offer Bitcoin Services if Government Makes Crypto Legal, Says CFO REGULATION | 19 hours ago US Lawmakers Urge SEC to Permit Trading of Bitcoin Spot ETFs REGULATION | 21 hours ago Tags in this story AFSA, AIFC, Assets, Astana, Crypto, crypto exchanges, Crypto investors, Cryptocurrencies, Cryptocurrency, financial authority, financial center, financial hub, income, Kazakhstan, limits, non-professional investors, Regulations, restrictions, retail investors, rules


Image Credits: Shutterstock, Pixabay, Wiki Commons Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments

News Feed

Federal Reserve’s Major Policy Shift to ‘Push Up Inflation’ Could Send Bitcoin Price to $500K
Federal Reserve"s Major Policy Shift to "Push Up Inflation" Could Send Bitcoin Price to $500KThe U.S. Federal Reserve has announced a significant policy change to push up inflation.
Chinese Central Bank Official Calls for Commercial Bank Blockchain Adoption
The head of the technology department at the People’s Bank of China (PBoC) has called for commercial banks to adopt blockchain technology in digital finance. As reported by Reute
Securing your crypto funds: Exchanges add support for hardware 2FA
Rachel Wolfson10 hours agoSecuring your crypto funds: Exchanges add support for hardware 2FAAs phishing attacks rise, crypto exchanges tell users to keep their funds safe by using YubiKey devices and Passkeys, along with
Former US solicitor general claims regulators want to ‘debank’ crypto
Turner Wright2 hours agoFormer US solicitor general claims regulators want to ‘debank’ cryptoSeveral parties have filed amicus briefs with the appellate court in support of Custodia Bank receiving approval for a mast
Kazakhstan Amends Registration Rules for Cryptocurrency Miners
Kazakhstan Amends Registration Rules for Cryptocurrency Miners The government of Kazakhstan has revised the registration requirements for persons and companies involved in crypto m
Savannah Fortis14 hours agoHong Kong politician responds to Vitalik’s comments about crypto-friendlinessJohnny Ng of Hong Kong’s Legislative Council said he “sincerely invites” Vitalik Buterin to Hong Kong to bet
Crypto Biz: Can Yuga Labs’ new CEO make Otherside a success?
Ana Paula Pereira2 hours agoCrypto Biz: Can Yuga Labs’ new CEO make Otherside a success?This week’s Crypto Biz features Yuga Labs’ new CEO and the challenges facing its Otherside metaverse, Binance’s decision to
Tom Mitchelhill8 hours agoCrypto miner Hive Digital CEO sees AI working in unison with blockchainDespite the competition between the two sectors, Hive Digital Technologies CEO Aydin Kilic said that blockchain and AI can
MetaMask partners with CoinLedger to make tax reporting easier for users
Tristan Greene7 hours agoMetaMask partners with CoinLedger to make tax reporting easier for usersThe partnership allows MetaMask users to export their tax information into CoinLedger via a single click.1773 Total views16
India tells tech firms approval is needed before releasing new ‘unreliable’ AI tools
Savannah Fortis13 hours agoIndia tells tech firms approval is needed before releasing new ‘unreliable’ AI toolsThe Indian government has issued a new advisory that warns tech companies developing new lab-level AI too
Ripple Has No Plans to Settle With SEC Over XRP, Confident Gensler Will Drop the Lawsuit
Ripple Has No Plans to Settle With SEC Over XRP, Confident Gensler Will Drop the Lawsuit Amid the ongoing lawsuit with the U.S. Securities and Exchange Commission (SEC), Ripple
Savannah Fortis1 hour agoGoogle makes AI disclosure mandatory in political campaign adsGoogle updated its political content policy to take effect starting November 2023, which will mandate disclosure of all AI-generated