In order to discourage “emotional” crypto purchases, the Bank of Russia intends to slow down transfers to cryptocurrency exchanges.
According to local news agency 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 country’s parliament are allegedly exploring new legislation. In order to restrict cryptocurrency investments by non-accredited investors.
During a Bank of Russia-sponsored event on financial consumer protection, the official made his views.
New and challenging
“We will try to offer maximal security for our citizens who invest in digital assets. Because it is a new instrument and challenging for an inexperienced investor”, Aksakov added.
Global investors are pouring billions of dollars into cryptocurrency, according to Aksakov. Cryptocurrency investing is linked with a lot of danger as well as potential profits. “We really need particular regulations to safeguard a non-professional investor from ill-considered digital currency investments,” he said.
Why to slow down crypto exchange transactions
The newest report coincides with the Bank of Russia’s recent intentions to slow down crypto exchange transactions in order to safeguard regular investors from “emotional” crypto purchases. According to Sergey Shvetsov, the Bank of Russia’s first deputy governor, this move will safeguard Russian investors from losses if the cryptocurrency market “crashes to zero.”
In Russia, cryptocurrencies such as Bitcoin (BTC) have become a popular financial instrument. According to the Russian Association of Forex Dealers’ August poll, 77% of Russian investors believe cryptocurrencies are the “most forward-looking” investment.