The central bank of Russia wants to add a limit for non-professional crypto investors. According to the proposal rolled out by the Bank of Russia, unqualified investors cannot invest more than $7,800 on digital assets on a yearly basis.
Limits on Digital Assets and Digital Rights
The Bank of Russia’s new proposal is not a separate thing but it will be implemented with a newly passed bill known as “On Digital Financial Assets.” Per the central bank proposal, unqualified investors face limitations both on digital assets and “other digital rights.” Non-professional investors cannot invest more than 600,000 Russian rubles ($7,800).
“Individuals representing unqualified investors will have a limit on the amount of digital financial assets for annual purchase at a total of 600 thousand rubles,” the statement reads.
According to the official statement, it will be imposed with DFA law by Jan.1 2021. However, it is just a proposal, and the central bank asked people for feedback on it. People can submit feedback about it from Oct. 13 to Oct. 27, 2020.
In July, a cryptocurrency bill passed from the State Duma of Russia, which declared cryptocurrency legal in the country, but DFA law did not permit cryptocurrency to be used as a payment method. However, it did not give legal clarity, but the bill called “On Digital Currency” would add clear regulations for digital assets.
The bill “On Digital Financial Assets” does not address limitations on the purchasing of digital assets by investors. That’s why the central bank adds a proposal to address limits on digital assets investments.
It is not the first time the Bank of Russia recommended limits on crypto purchasing. In 2019, the bank proposed a limit of 600,000 worth $9,100.
Russia’s central bank published a consultation paper over state digital currency, digital Russian rubble. The paper further unveils that it is necessary for Russia to issue state digital currency that will “also limit the risk of reallocation of funds into foreign digital currencies, contributing to macroeconomic and financial stability.”