Russian Parliament to Consider Restrictions for Non-Qualified Crypto Investors

Cryptocurrency can be quite complicated for some and lawmakers in Russia think they need to contemplate restrictions for private investors. According to a high-ranking representative of the legislature, the Russian parliament needs to provide them with “maximum protection” against the risks.

Members of Russian Parliament to Seek Protection for Citizens Investing in Cryptocurrency

Deputies in the State Duma, the lower house of Russian parliament, are thinking about introducing certain legal restrictions on the funds non-qualified investors can put into crypto assets. Anatoly Aksakov, chairman of the parliamentary Financial Market Committee, revealed the intention during an international conference on consumer protection for users of financial services, Interfax reported.

Billions of dollars are being spent on the acquisition of cryptocurrency, Aksakov noted in his statement while highlighting the great risks but also the great returns associated with this type of investment. He then emphasized that “digital assets are subject of our close attention,” insisting lawmakers need to adopt provisions that will safeguard “unqualified” individuals from “ill-considered investments.”

The high-ranking member of the Duma emphasized that Russian deputies will look into ways to ensure “maximum protection” for citizens investing in digital currencies and similar assets. As a new financial instrument, cryptocurrency can be quite complicated for non-qualified investors, Anatoly Aksakov pointed out in his address to the participants in the forum.

This isn’t the first time authorities in Moscow have discussed restrictions on how much ordinary people should be allowed to invest in cryptocurrencies. Last October, Bank of Russia proposed an annual limit of 600,000 rubles ($8,300 at the time of writing) seeking public opinion on the threshold.

The restriction had to be incorporated into the law “On Digital Financial Assets” which went into force on Jan. 1 this year. The head of the Duma’s Financial Market Committee did not elaborate on the legislative measures he was referring to now.

The Russian central bank, known for its hardline stance on crypto regulations, stated in July that the purchase of financial instruments linked to crypto-assets “entails increased risks of losses for people who do not have sufficient experience and knowledge.”

The monetary authority issued the warning as part of a recommendation for Russian exchanges to prevent trading domestic or foreign securities, the dividend payments of which depend on cryptocurrencies. The bank specifically listed products tied to the prices of digital assets, changes in crypto indices, and the cost of crypto derivatives.