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Russia’s financial watchdog suggests legal restriction on cryptos for this reason

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Russia seems to be a long way from accepting any cryptocurrency as legal tender. Moscow partially regulated coins and tokens with the law dubbed “On Digital Financial Assets” became legally valid at the beginning of this year. Its provisions say cryptocurrencies are property but forbid their use for payments.

Chairman of the Russian State Duma Committee on Financial Markets, Anatoly Aksakov recently aired his viewpoints concerning restrictions on digital tokens.

“State Duma deputies will think about a legislative restriction on investments of unqualified investors in cryptocurrencies and crypto assets in order to protect private investors”

Russia needs to adopt new laws to protect retail investors from the potential losses of investing in crypto, local news agency Interfax reported. But why the sudden need? Here’s the reason. According to Aksakov,

“Digital assets are the topic of our close attention, and here we will look at protecting our citizens as much as possible when investing in digital currencies and digital assets, because here is a new tool, and it is quite complex for an unqualified investor.”

There’s no denying that crypto tokens possess great risk, but also a large yield and Aksakov acknowledged it as well. ‘Billions of dollars are now spent on the acquisition of digital currency, there is a great risk, but also a large yield,’ he opined.

“We certainly need to provide specific legislation to protect a non-professional investor from ill-considered investments in digital currencies”

This news contains a similar tone to that Central Bank of Russia’s narrative, earlier in September, 2021. The CBR with commercial banks collaborated to delay payments made to crypto exchanges.

Nevertheless, crypto traction in Russia has witnessed a significant rise. Around 77% of Russian investors said that cryptocurrencies were the “most forward-looking” investment. Considering the sheer number, these tokens have taken the citizens by storm.

In addition to this, other countries too have taken steps to constraint the rising demand for cryptocurrencies. Consider South Korea for instance. The authorities have taken siginificant steps to curb the rising crypto demand. Be it putting tax, cracking down on exchanges and various others.

However, it seems according to Anatoly Gavrilenko, the founder of Alor group, crypto is here to stay. He also added,

“Cryptocurrency is a certain symbol of freedom, financial freedom, it is a signal to all regulators that it is not necessary to bring people and corner them. People will always come up with something that will make them bypass the bans.”

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Shubham is a full-time journalist at AMBCrypto. A Master's graduate in Accounting and Finance, Shubham's writings mainly focus on crypto-regulations across the United States and Europe. Also, a die-hard Chelsea fan #KTBFFH.