One of the world’s largest block reward mining centers has set a limit on how much money investors can put into digital currencies. Kazakhstan will limit residents’ investment in digital assets to 10% of their annual income and tighten exchange regulations.
Kazakhstan has established itself as a major player in the global block reward mining market. According to recent data, the country ranks second only to the United States in mining, accounting for 18% of the worldwide hash rate. It has become a haven for Chinese miners leaving the country.
While the country’s mining industry continues to expand, the government has imposed trade restrictions. The Astana Financial Services Agency (AFSA) has limited retail traders to 10% of their yearly income or 5% of their total assets, excluding their primary house, according to local news portal Kapital.kz.
Traders can invest up to $100,000 every year, but only if they can provide the regulators proof of their resources. The limit for those who do not want to give their financial information is $1,000 every month, according to the outlet.
The information was obtained straight from the AFSA, according to the local publication, and the report was confirmed on November 4. According to reports, the new laws went into force on October 26.
According to the SEC, the guidelines are designed to safeguard retail investors from dangers such as losing all of their money.
Hong Kong regulators proposed similar measures earlier this year to prevent retail traders from accessing the digital asset market. The Financial Services and Treasury Bureau (FSTB) said in May that digital asset trading would be limited to professional investors with a portfolio worth at least HK$8 million (US$1 million).
This restriction would exclude most investors, as ordinary investors considerably outweigh professional investors in the worldwide digital currency market. The rule is not yet in effect.