One of the world’s leading crypto mining hubs is limiting how much money investors can allocate to digital currencies. Kazakhstan will only allow its citizens to invest 10% of their annual income in digital assets and looking to get more stringent with exchanges. The central Asian country is now one of the biggest players in the global block reward mining industry.
Kazakhstan is only second to the U.S. in crypto mining.
According to recent data, the country is only second to the U.S. in crypto mining, accounting for 18% of the global hash rate. It has provided a home to crypto miners who are fleeing from China after a regulatory crackdown. And while its mining sector continues to grow, the government is putting restrictions on trading. Local outlet Kapital.kz reported that the Astana Financial Services Agency (AFSA) has announced to restrict retail traders to 10% of their annual income or 5% of their total assets, excluding their main residence.
Traders can invest up to $100,000 a year after proving their finances.
Cryptocurrency traders can invest up to $100,000 a year, but only after they can provide evidence of their finances to the regulators. For those that choose not to share their financial data, the limit is at $1,000 per month, the outlet reports. The local outlet said it received the information from the AFSA directly, and the report was confirmed on November 4. The new rules reportedly took effect on October 26. The financial regulator claims that the rules are to protect retail investors from risks such as losing their capital in its entirety.