Sophisticated and complicated are some ways to describe the world of cryptocurrency, blockchain, protocols and smart contracts and the like. Add investing in bitcoin and cryptocurrency, well that is a whole other ball game, that’s where the Russian government wants to step in and protect investors in the country.
During a conference for consumer protection, Anatoly Aksakov, the chairman of the Financial Market Committee of the State Duma, The lower house of the Russian Parliament and its Deputies are contemplating the introduction of various legislations to limit the amount of money to investors can turn into cryptocurrencies and Bitcoin assets who may be unqualified to invest.
Although I do agree safeguards are needed in any sector where consumers buy products, I’m not so sure any government should legislate the amount of money a person can invest in the markets, cryptocurrency or traditional. Sounds a bit like the old regime. For example, look at El Salvador, not only is Bitcoin legal currency, non citizens can hold crypto assets tax free in their country.
Hundreds of millions of dollars are invested in cryptocurrencies everyday with many people being coming rich over night. But many also lose a lot of money. Anatoly Aksakov remarked that the amount of money being spent to acquire cryptocurrency assets are in the Billions and strongly emphasized " digital assets are a subject of our close attention" adding legislators must create laws to protect "unqualified individuals from ill-considered investments"
"Maximum protection" is how Dumas high ranking Russian deputies described the outcome, needing to come up with various means and solutions to protect investors who may not be knowledgeable enough to invest in cryptocurrencies and other digital assets like NFTs.
Anatoly Aksakov also said to a group, cryptocurrencies are like a new financial system and can complicated to navigate for non-qualified investors
This probably won’t be the last time Russian tries to restrict the amount citizens can invest in cryptocurrency and bitcoin. Last October, authorities in Russian capital, Moscow and the Central Bank Of Russia wanted to restrict the amount regular citizens could buy and invest into cryptocurrency by limiting an yearly maximum 600,000 rubles.
On January 1 2021 the restrictions became in effect "On Digital Financial Assets" the Duma’s committee leader did not explain further on the legal steps taken but said the steps needed to be taken.
In July of this year the Russian Central Bank took a hardline stance saying acquiring crypto assets "entails increased risks of losses for people who do not have sufficient experience and knowledge."
The Russian Central Bank listed cryptocurrency connected products such as digital assets, derivatives cost and crypto indices changes then gave a warning in a recommendation to stop Russian exchanges from paying dividends depending on crypto assets and to prevent trading in foreign and domestic securities.
What’s your take? Will The Russian parliament impose tough restrictions for non-qualified crypto investors? Tell me what you think in the comments section below, lets start a conversation!
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