Russia aims to limit crypto purchases for non-accredited or unskilled investors. The Bank of Russia aims to slow down transactions to crypto exchanges to prevent any further “emotional” crypto purchases.
Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, clarified that Russia needs to affirm new laws to protect retail investors from the potential losses of investing in crypto, reported by local news agency Interfax on Wednesday.
New legislation to limit cryptocurrency investments are reported to be considered by the lawmakers in the country’s parliament. Aksakov stated in the official statement.
During an event devoted to the financial consumer by the Bank of Russia, the officials delivered this announcement. This will impact the country’s crypto investments majorly in the future.
“Digital currencies are subject to our enhanced focus, and we will look to provide maximum protection for our citizens who invest in digital assets because it is a new instrument, and it is quite difficult for an unskilled investor,”– Anatoly Aksakov, Chairman of the Russia State Duma Committee
“We need to protect non-professional investors”
According to the bank, cryptocurrency investments are associated with a lot of risk and promising returns. And with global investors pouring billions of dollars into crypto, the bank made it clear to protect non-skilled invertors.
Aksakov further added. “We certainly need to provide specific legislation to protect a non-professional investor from ill-considered investments in digital currencies,” he stated.
Sergey Shvetsov, the first deputy governor at the Bank of Russia, argued that this measure would protect Russian investors from losses in a scenario where the cryptocurrency market “crashes to zero.”
Cryptocurrencies have emerged as the most popular investment tool in Russia, largely Bitcoin (BTC). According to an August survey by Russia’s Association of Forex Dealers, 77% of Russian investors said cryptocurrencies are the “most forward-looking” investment.
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