Russia wants to limit digital currency investments by unaccredited investors
Russia may soon limit the digital currency investment options available to ordinary retail investors. The country’s legislature is weighing a law it says will protect investors from complex investment options, drawing inspiration from Hong Kong which has proposed a similar policy.
Anatoly Aksakov, head of the Russian State Duma’s financial markets committee, confirmed the new bill at a recent event on consumer rights protection.
“Digital assets are a topic [that has] our full attention, and we will consider how to protect our citizens as much as possible when they invest in digital currencies and digital assets, because [it’s] a new tool, and that’s quite difficult for an unqualified investor, ”the legislator said.
While digital assets present a great opportunity for profitability for traders, they also come with great risk, he told attendees. Regardless of the risk, Russian investors are investing billions of dollars in the sector, Aksakov observed. If left unchecked, it could pose a risk not only to individual investors, but also to the financial system as a whole, he believes.
“… We must prescribe in legislation the standards which will protect an unqualified investor in reckless investments in digital currencies,” he said at the conference.
By limiting access to digital assets to retail investors, Russia would follow a precedent set by Hong Kong. The special administrative region offers limit digital asset purchases to professional investors in May 2021. Hong Kong Financial Services and the Treasury Office (FSTB) claimed at the time that most digital asset products are too complex and risky for them to operate. ordinary retail investor.
The law has not yet been voted. If it takes effect, it will limit access to digital assets to investors who have a portfolio of at least HK $ 8 million ($ 1.05 million).
The restrictions on investing in digital assets come as no surprise, noted Anatoly Gavrilenko, founder of Russian financial services firm Alor Group. According to him, digital currencies give their users the freedom that central banks and other financial companies have sought to deny them for ages.
Speaking to Russian Interfax news agency, he said: “Cryptocurrency is a symbol of freedom – financial freedom. It’s a signal to all regulators that they can’t push people into a corner.
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