According to local media outlet Interfax, Anatoly Aksakov, head of the Russian State Duma Committee on Financial Markets, Russia has to establish new regulations to safeguard ordinary investors from the possible risks of investing in cryptocurrency.
As a result, he added, legislators in the nation’s parliament are allegedly exploring new legislation to restrict digital currency investments by non-accredited investors.
The official spoke at a Bank of Russia-sponsored seminar focusing on financial consumer safety.
“Digital currencies are subject to our enhanced focus, and we will look to provide maximum protection for our citizens who invest in digital assets because it is a new instrument, and it is quite difficult for an unskilled investor,” Aksakov stated.
Digital currency investing has a high level of risk and the potential for high rewards, according to Aksakov, with worldwide investors pouring billions of dollars into cryptocurrency.
“We certainly need to provide specific legislation to protect a non-professional investor from ill-considered investments in digital currencies,” he noted.
The newest report coincides with the Bank of Russia’s recent intentions to slow down crypto exchange transactions to safeguard regular investors from emotional cryptocurrency purchases. According to Sergey Shvetsov, the Bank of Russia’s first deputy governor, this move will safeguard Russian investors from losses if the digital currency market collapses to zero.
In Russia, digital currencies such as Bitcoin (BTC) have become a popular financial instrument. As per the Russian Association of Forex Dealers’ August poll, 77 percent of Russian investors believe digital currencies are the best investment.