Kazakhstan Limits Crypto Investment for Retail Players: Report

The country’s financial regulator is worried about the high risk associated with crypto.

Nov 4, 2021 at 9:06 a.m. UTC
Updated Nov 5, 2021 at 5:53 a.m. UTC

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Kazakhstan has limited the amount of money local retail investors can put into crypto, domestic news website Kapital.kz reported on Wednesday.

  • The AFSA confirmed the news to CoinDesk via email later on Thursday.
  • Retail investors can invest 10% of their annual income or 5% of their total assets, excluding their main residence, up to $100,000 per year as long as they provide evidence of their finances to the regulator, the site reported.
  • Should investors not provide any evidence of their finances, they can invest up to $1,000 per month, according to Kapital.kz, which said it attained the information from the Astana Financial Services Agency (AFSA) directly.
  • The limits have been introduced to protect retail investors from crypto-related “high risks” that can include the complete loss of capital, the AFSA told Kapital.kz.
  • The AFSA has also created a roadmap to develop the crypto market in the country. Under the plan, crypto exchanges will operate as a pilot starting at the end of 2021 and for one year.
  • The rules set by the AFSA took effect on Oct. 26, the report said.
  • The agreed rules are harsher than those proposed by the Astana International Finance Center (AIFC) earlier, according to Kapital.kz. An AIFC committee had proposed a monthly limit of $2,000 for retail investors.
  • Kazakhstan has seen a massive influx of crypto miners since China started a crackdown on the crypto mining industry in May. The country is facing severe electricity shortages, in part because of the influx of miners, and is planning to limit the electricity consumption of new mines.

UPDATE (NOV. 5 5:53 UTC): Adds AFSA confirmation in first bullet.


Read more about
The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

CoinDesk - Unknown

Eliza Gkritsi is CoinDesk's crypto mining reporter based in Asia.

Trending

1
CoinDesk - Unknown
Argentinian Crypto Exchange Buenbit Cuts 45% of Staff Due to Tech Industry Downturn

The company will focus on its current operations in Argentina, Mexico and Peru, and freeze previous plans to expand into other countries.

The company will focus on its current operations in Argentina, Mexico and Peru, and freeze previous plans to expand into other countries.

CoinDesk - Unknown
2
CoinDesk - Unknown
Bitcoin Rangebound; Support at $27K, Resistance at $33K

Technical indicators are neutral, and upside appears limited from here.

Technical indicators are neutral, and upside appears limited from here.

CoinDesk - Unknown
3
CoinDesk - Unknown
How Do You Value Metaverse Projects? We Tried. Here’s What We Found

On a per-user basis, the valuations for Decentraland, Axie Infinity and The Sandbox look quite high. But just picking the right metric is tough in this loosely defined niche.

On a per-user basis, the valuations for Decentraland, Axie Infinity and The Sandbox look quite high. But just picking the right metric is tough in this loosely defined niche.

CoinDesk - Unknown
4
CoinDesk - Unknown
More Downside Ahead for Bitcoin, Says Top Valkyrie Analyst

“It’s a marathon, not a sprint,” Josh Olszewicz, head of research at Valkyrie, said about bitcoin’s price recovery, on CoinDesk TV’s “First Mover” program.

“It’s a marathon, not a sprint,” Josh Olszewicz, head of research at Valkyrie, said about bitcoin’s price recovery, on CoinDesk TV’s “First Mover” program.

CoinDesk - Unknown