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Russia limits cryptocurrency transactions among non-accredited investors

TL;DR

TL;DR Breakdown

  • Russia is limiting non-accredited investors from purchasing crypto.
  • The Bank of Russia wants to decelerate cryptocurrrency transactions to shield investors. 

Anatoly Aksakov, the current chairman of Financial Markets in Russia’s Duma state, said that Moscow should adopt new laws to limit non-accredited investors to mitigate the results of poor investing decisions in the country.

He added that lawmakers are considering coming up with rules restricting non-accredited investors’ dealings to avoid suspicious crypto activity. Anatoly made the remarks during a consumer protection event sponsored by the Bank of Russia.

Reason for limiting non-accredited investors

Using crypto for investment is typically associated with high risk. Anatoly observed that digital currencies are the subject of their focus. Their primary goal is to protect innocent people who make wrong investment decisions due to poor advice. The official added that the cryptocurrency space is still ñew and evolving, cautioning unskilled investors against making rush investing decisions. 

Russia’s relationship with crypto

The latest development aligns with the country’s goal to reduce cryptocurrrency transactions made to cryptocurrrency exchanges and protect investors against “emotional buying.” Sergey Shvetsov, a previous governor at the Bank of Russia, stated that limiting non-accredited investors would regulate the cryptocurrrency space and cushion investors in the event of unforeseen eventualities. 

Earlier last month, Dmitri Peskov, a Kremlin spokesman, said that Russia wasn’t keen on adopting crypto as legal tender. Dmitri thought that cryptocurrrency could disrupt the country’s economy, which would be detrimental to the country’s financial future. This wasn’t a surprise owing to the fact the country’s government has never been comfortable with cryptocurrencies. In June, the Bank of CBR governor declared that crypto assets are a dangerous affair. 

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Earlier in the year, the government prohibited anyone working in the civil authority from owning crypto assets. Peskov’s remarks came as El Salvador officially adopted Bitcoin as a mainstream currency. In last month, September, an official of CBR, Shvetsov, revealed that they were working with commercial banks to delay payment transactions that non-accredited investors were making to crypto assets exchanges.

The bank official was quoted saying that they were skeptical of acquiring crypto for investment purposes. He added that they believe investing in crypto is different from traditional assets, is a high-risk affair, and its features are similar to pyramid schemes. Shvetsov reiterated that the only legal means of payment in the country is the ruble. In the meantime, the digital ruble is in the offing. The digital ruble is expected to be launched by the end of the year.

Summary

Assessing past and current events surrounding crypto in the country, it’s clear that Russia has a long way to go regarding adoption and usability. However, limiting the non-accredited investors is sure to enhance investors’ protection. 

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Edith Muthoni

Edith is an investment writer, trader, and personal finance coach specializing in investments advice around the fintech niche. Her fields of expertise include stocks, cryptocurrencies, blockchain, and cryptocurrency investments.

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