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The Russian State Duma Deputies are on track to begin discussions on a regulation that will prevent private digital currency investors from engaging with the digital assets henceforth. According to the local news channel, Interfax, the move to restrict what it called “Unskilled Investors” was confirmed by Anatoly Aksakov, head of the Duma Committee on the Financial Market, during the International Conference on the Protection of Consumer Rights of Financial Services.
Joining the long list of lawmakers around the world, the Russian State Duma is notably skeptical about the suitability of digital currencies for unskilled investors. With the underlying technicalities as it borders on volatility and the fast pace of innovation in the space, the State Duma believes the space is right for more than just the average investor.
“Digital assets are a 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 here is a new tool, and it is quite difficult for an unskilled investor,” said Aksakov, adding that the lawmakers will work to “prescribe in the legislation the norms that will protect an unqualified investor in ill-considered investments in digital currencies.”
Stumping Growth for the Retail Investors
The alleged unskilled investors make up the retail investor class, and over time, have grown to become an indispensable pillar holding up the cryptocurrency ecosystem. Despite giving crypto a positive nod back in 2020, Russia has notably taken the position of an anti-Bitcoin region this year. Many have argued that the recent proposals to ban retail investors from investing in digital currencies in Russia might create a dent that might be made in the broader industry which is seeking avenues to expand even to more backers in the near future.
Industry veterans in Russia believe that as with other countries where there are some forms of the crypto ban, investors have often devised an avenue to bypass the law, which may also be the case in the country.
“Cryptocurrency 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,” said Anatoly Gavrilenko, founder of Alor Group.
While the bill has not yet been made into law, the Central Bank has indicated that if passed, would usher in a preventive measure that will protect investors across the board.
