Russian plans to limit crypto trading for non-accredited retail investors
The planned restriction on crypto purchases is aimed at protecting retail investors from potential losses due to “emotional” crypto purchases.
Thu, 07 Oct 2021, 12:21 pm UTC
Russia is mulling on the possibility of introducing new legislation that will place restrictions on crypto investment by non-accredited investors. The move is aimed at protecting retail investors from potential losses due to “emotional” crypto purchases.
Anatoly Aksakov, chairman of the Duma Committee on the Financial Market, believes that Russia should introduce new laws that will protect retail investors from potential losses in crypto investments. He suggested placing legislative restrictions on cryptocurrency investments for unqualified investors.
“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,” Aksakov said during the Bank of Russia-backed International Conference on the Protection of Consumer Rights of Financial Services, Interfax reported.
As crypto-assets continue to attract millions of investors worldwide, the global crypto market has ballooned into a multi-billion dollar industry. While there’s potential for huge returns in crypto investments, there are also risks associated with the new asset class especially for retail investors new to the market.
“We certainly need to provide specific legislation to protect a non-professional investor from ill-considered investments in digital currencies,” Aksakov added.
Meanwhile, the head of the Laboratory for Analysis of Institutions and Financial Markets at the Institute of Applied Economic Research (IPEI) of the RANEPA Alexander Abramov pointed out that crypto is becoming more popular among Western fund managers. “Now 14% of all US financial advisers offer their clients a real option from 1% to 2% of assets to be held in private cryptocurrencies,” he said.
However, Alor Group founder Anatoly Gavrilenko, who participated in the discussion during the event, pointed out that placing bans or restrictions might not be very effective and even contrarian to the decentralized nature of cryptocurrencies. “Cryptocurrency is a certain symbol of freedom, financial freedom, it is a signal to all regulators that there is no need to bring people into a corner,” he said. “People will always come up with something that will force them to bypass the bans.”
<Copyright © TokenPost. All Rights Reserved. >