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.
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.