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The Russian government wants to limit crypto purchases by non-accredited investors

Updated: Aug 31, 2024
Published: Oct 7, 2021
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Cryptocurrency investment is becoming widespread globally, but the Russian central bank wants to control how its citizens invest in the market.

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Bank of Russia to limit investors’ crypto purchases

The Bank of Russia has revealed that it wants to limit how much non-accredited investors spend on cryptocurrencies. The move is to ensure that the limited exposure to cryptocurrencies would reduce the risks attached to investing in the coins.

Local news agency Interfax reported yesterday that Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, wants Russia to adopt new laws that would protect retail investors from the potential losses of investing in crypto. As a result, Russian lawmakers are now considering new legislation to limit cryptocurrency investments by non-accredited investors.

He mentioned this while speaking at a Bank of Russia-backed event on financial consumer protection. The official stated that

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.
He argued that crypto investment had been associated with a lot of risk as well as promising returns. Due to the risks present, Aksakov said the government needs to provide specific legislation to protect a non-professional investor from ill-considered investments in digital currencies.

Russia is one of Bitcoin’s biggest markets

Russia is one of the leading Bitcoin markets in the world. This latest development comes after the Bank of Russia announced new plans to slow down transactions to crypto exchanges. The move is to protect retail investors from emotional purchases of crypto.

According to Sergey Shvetsov, the first deputy governor at the Bank of Russia, the measures would ensure that Russian investors don’t lose everything if the cryptocurrency market crashes to zero.

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