Kazakhstan has restricted the amount of cash native retail traders can put into crypto, home information web site Kapital.kz reported on Wednesday.
- Retail traders can make investments 10% of their annual revenue or 5% of their complete property, excluding their major residence, as much as $100,000 per yr, so long as they supply proof of their funds to the regulator, the location reported.
- Should traders not present any proof for their funds, they will make investments as much as $1,000 per 30 days, in response to Kapital.kz, which mentioned it attained the data from the Astana Financial Services Agency (AFSA) straight.
- The AFSA was not out there for remark on the time of publication.
- The limits have been launched to guard retail traders from crypto-related “high risks” that may embody the whole lack of capital, the AFSA informed Kapital.kz.
- The AFSA has additionally created a roadmap to develop the crypto market within the nation. Under the plan, crypto exchanges will function as a pilot beginning on the finish of 2021 and for one yr.
- The guidelines set by the AFSA took impact on Oct. 26, the report mentioned.
- The agreed guidelines are harsher than these proposed by the Astana International Finance Center (AIFC) earlier, in response to Kapital.kz. An AIFC committee had proposed a month-to-month restrict of $2,000 for retail traders.
- Kazakhstan has seen a large inflow of crypto miners since China began a crackdown on the crypto mining trade in May. The nation is going through extreme electrical energy shortages, partially due to the inflow of miners, and is planning to restrict the electrical energy consumption of latest mines.
Read extra: Kazakhstan to Limit Power for Crypto Mining to 100 MW Nationwide