As per the latest reports, Kazakhstan has made an announcement that is related to cryptocurrencies. The country officials have made an announcement that is not going to be much promising for the locals and the cryptocurrency investors’ community in the country.
Kazakhstan is now among one of the leading countries when it comes to leading the cryptocurrency mining sector. Since the beginning of 2021, Kazakhstan has become a hub and a go-to region for cryptocurrency mining firms.
The country’s climate is one of the advantages it has over countries like China or Hong Kong, and even the United States when it comes to mining.
As China started kicking out mining firms from its jurisdictions starting May of 2021, Kazakhstan became one of the major picks for mining firms to relaunch their mining operations.
The regulators in Kazakhstan have come up with a new regulation surrounding cryptocurrencies. The new regulation would reportedly limit the amount of money the locals would be able to invest in cryptocurrencies.
The regulators in Kazakhstan have announced that the locals in the country will not be allowed to invest more than a certain percentage of their annual salary in cryptocurrencies.
The reports reveal that the local investors will not be allowed to invest more than 10% of their annual salaries in cryptocurrencies. It is also being reported that the regulatory authorities in Kazakhstan are aiming to become stricter with the exchanges operating in the country.
There are speculations that it might be due to the high amount of revenue generation from cryptocurrencies that Kazakhstan is ensuring it achieves. However, the country doesn’t want to overachieve it and become highly dependent on the revenues generated through cryptocurrencies.
Just like other countries, Kazakhstan is also well-aware of the risks it has invoked by becoming a mining hub for cryptocurrency mining firms. Kazakhstan’s mining block has become one of the most rewarding ones for cryptocurrency mining firms in recent months.
Therefore, the country is aiming to strictly regulate cryptocurrencies but it does not want to fully ban its local investors from investing in cryptocurrencies. It wants the locals in the country to benefit from a certain percentage of their salaries by investing them in cryptocurrencies.
Until the beginning of 2021, it was China that was the country with the highest mining rate in the entire world. However, as China went on an onslaught of cryptocurrency mining firms in the country starting May of 2021, it lost the crown of being the highest crypto-mining country.
On the other hand, the United States has changed its stance towards cryptocurrencies. It has now become the largest country in the world in terms of cryptocurrency mining and Kazakhstan is second to the United States.