A regulation preventing private crypto investors from participating in digital assets is being discussed by delegates to the Russian State Duma. Accordingly, Russia limits crypto exposure to inexperienced investors.
Russia limits crypto exposure to inexperienced investors
According to the local news channel Interfax, the move to restrict so-called “unqualified investors” was confirmed by Anatoly Aksakov, chairman of the Duma Committee on Financial Markets, during the International Financial Markets Conference.
The Russian State Duma joins the long list of legislators worldwide and is particularly skeptical of the suitability of digital currencies for inexperienced investors. With fundamental techniques bordering on the volatility and the rapid pace of innovation in space, the State Duma believes the space is suitable for many ordinary investors.
“Digital assets is a topic that we are paying a lot of attention to, and here we are going to look at how we can maximize the protection of our citizens when investing in digital currencies and digital assets – an inexperienced investor.”. Aksakov said, adding that lawmakers will work to “set the legal standards that protect an unauthorized investor from making ill-considered investments in cryptocurrencies.”
Russia limits crypto exposure to inexperienced investors as retail investor participation in the sector is growing rapidly
Inexperienced investors supposedly form the retail investor class and have become a solid pillar of the crypto ecosystem over time. Although Russia made a positive nod to crypto again in 2020, it has noted an anti-bitcoin area this year. Many have argued that recent proposals to ban retail investors from investing in digital currencies in Russia could create a potential dent in the broader industry that is looking for a way to expand to even more backers in the near future.
Industry veterans in Russia believe that, like in other countries where there is some form of crypto bans, investors often find a way to bypass the law, which they can.
“Cryptocurrency is a clear symbol of freedom, financial freedom, it is a signal to all regulators that there is no need to corner everyone. Anatoly Gavrilenko, founder of the Alor Group, said.
While the bill is yet to be enacted, the central bank has hinted that if passed, it would open a precautionary measure to protect investors across the board.
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