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Russia reportedly considers regulations on crypto currencies

written by Bella Palmer
russia-crypto-currencies

The latest comments from the Duma committee chairman align with previous announcements from the Bank of Russia in which it noted that plans are in motion to restrict suspicious crypto activities

Russian authorities are reportedly planning to implement regulations to protect investors from potential risks related to dealing with digital assets.

State Duma, the lower house of the Federal Assembly of Russia, believes crypto currencies can be a highly dangerous financial tool for private investors. As such, the authorities intend to implement a regulatory framework on trading with them, a recent report claimed.

According to local coverage, the Russian government reiterated its negative opinion on dealing with digital currencies. Anatoly Aksakov, Head of the Duma Committee on the Financial Market, opined that the asset class could bring significant profits to investors. Still, at the same time, it can be highly dangerous, which is why lawmakers should impose specific rules:

Digital assets are the topic of our close attention, and here we will look at how to maximally protect our citizens when investing in digital currencies and digital assets, because there is a new tool, and it is quite difficult for an unskilled investor, he said.

We certainly need to provide specific legislation to protect a non-professional investor from ill-considered investments in digital currencies, he said.

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.

On the other hand, Alexander Abramov – a top executive at the Institute of Applied Economic Research – opposed the potential move. According to him, digital assets have positively impacted the Western markets in recent years since people find them an attractive investment instrument. Private crypto currencies also successfully compete with centralized government monetary projects, he concluded.

Anatoly Gavrilenko, founder of the investment banking company Alor Group, opined that bitcoin and the altcoins resemble people’s freedom. Even if authorities ban them, society will always find a way to deal with them:

He had stated: Crypto currency is a certain symbol of freedom, financial freedom, it is a signal to all regulators that there is no need to bring people into a corner. People will always come up with something that will force them to bypass the bans.

In July, the Central Bank of the Russian Federation cautioned Russian exchanges not to allow securities related to crypto currencies and crypto-assets, citing high volatility, low liquidity, and non-transparent pricing, among other risks.

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