Kazakhstan imposes purchase limits on retail crypto investors – Bitcoin News regulations

Authorities in Kazakhstan have introduced restrictions on the amounts of cryptocurrency that retail investors can buy on local exchanges. Officials explained the decision, citing the need to protect individuals from exposure to risks associated with digital financial assets.

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

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

The publication notes that the respective changes to the rules governing the activities of the Nur-Sultan Financial Center were proposed by the AIFC Financial Services Regulatory Committee in July and adopted in late October. Commenting on the changes, AFSA noted:

Limits are introduced to protect the interests of retail investors, as transactions with digital assets are associated with high risks, up to a total loss of invested capital.

The authority introduced two limits. Without confirming their income and assets, retail investors will be allowed to acquire up to $ 1,000 per month in cryptocurrency. If they want to buy more coins, they will have to report 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.

AFSA further noted that a roadmap for the development of the crypto market in Kazakhstan has been approved and that the authority is now taking steps to implement it by 2022. A pilot project for the The opening of cryptocurrency exchanges at the capital’s financial hub will be launched later this year, officials revealed and elaborated:

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

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 against various fraud schemes, he added.

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

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

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AFSA, AIFC, Assets, Astana, Crypto, Crypto Exchanges, Crypto Investors, Cryptocurrencies, Cryptocurrency, Financial Authority, Financial Center, Financial Center, Income, Kazakhstan, Limits, Retail Investors, Regulations, Restrictions, Retail Investors, rules

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