By Shelly Melancon (Switzerland)
Authorities in Russia have recently made moves to control crypto purchases made by retail investors. According to reports, authorities are advocating for new laws that will protect retail investors from incurring losses on their crypto investments. The Chairman of the Duma Committee on Markets in Russia, Anatoly Aksakov, was quoted by a local media outlet on Wednesday saying that the country needed more laws to safeguard against the volatility of cryptocurrencies.
On this basis, Russian lawmakers are already deliberating on regulations that will limit crypto purchases by unlicensed investors, chairman Anatoly revealed. The Duma committee on financial markets chairman made these remarks while speaking at an event organized by the Bank of Russia. The theme of the event bordered on financial consumer protection.
Russian Authorities Adopt Measures to Protect Investors
Speaking further, Anatoly Aksakov noted that authorities are zooming their focus on digital currencies. As such, they will implement measures to maximally protect locals who invest in them because cryptocurrencies are relatively new. Given this, Anatoly noted that it will be difficult for inexperienced investors to navigate their way around.
While the chairman acknowledged that cryptocurrencies produce great returns, he also added that they come with high risks. Anatoly attributed the reason digital currencies yield high returns to global investors who keep pumping billions of dollars into crypto assets.
Also read:Bank of Russia Takes Action Against Illegal Activities Using Crypto, Asks Local Banks To Shut Down Accounts
The latest comments from the Duma committee chairman and others align with previous announcements from the Bank of Russia in which it noted that plans are in motion to restrict emotional and suspicious crypto activities.
In a September report quoting the central bank, it was revealed that the Bank of Russia had issued directives to local banks and credit firms, urging them to close the accounts of clients whose accounts are being used for illegal activities related to crypto. The report also said that the Bank of Russia was also seeking to protect retail investors from making emotional decisions on crypto purchases.
The deputy governor of the Bank of Russia, Sergey Shvetsov was recently quoted saying that the new measures were being implemented to help Russian investors avoid potential losses if the crypto market dwindles to zero. Following its order to local banks, the Bank of Russia outlined criteria for local banks to follow while restricting accounts used for illegal activities.
The Bank of Russia also prevented local banks from engaging in crypto trading. Despite the central bank’s recent efforts, digital currencies have continued to enjoy adoption in Russia. An August survey recently found that 77% of Russian investors preferred crypto investments to other forms of investments.
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