Russia, Duma ready to restrict crypto trading
Russia, Duma ready to restrict crypto trading
Regulation

Russia, Duma ready to restrict crypto trading

By Eleonora Spagnolo - 7 Oct 2021

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Russia’s parliament, the Duma, is set to ban crypto trading by unskilled investors.

For crypto, this is yet another blow within the nation led by Vladimir Putin.

Protecting unqualified investors

The announcement came from MP Anatoly Aksakov, who heads the Financial Markets Committee in the Russian parliament. It was he who announced a law to protect investors from making bad financial choices. At a conference dedicated to consumer rights, he said:

“Digital assets are a topic we are paying close attention to, and we will look to protect our citizens as much as possible when they invest in digital currencies and digital assets, because this is a new instrument, and it is quite complex for the unqualified investor”.

The point is that cryptocurrencies offer great opportunities and just as many risks: that is why it is important to protect less experienced investors.

How this will happen is currently unknown. What is clear is that Russia is adopting stringent regulation of cryptocurrencies. 

Restrictions on crypto trading in Russia

Russia seems to have a controversial relationship with digital assets. Last year, the Duma passed a law regulating crypto trading but preventing cryptocurrencies from being used as means of payment. The rule came into effect in 2021. 

Russia crypto trading
Russia to ban crypto trading?

In recent months, however, the authorities’ attention seems to be tightening. 

A statement issued by Russia’s central bank called on banks to block money transfers to suspicious activities. These included cryptocurrency exchanges

This clampdown is due to the fact that Russia is one of the countries from which many hackers come. These are criminals who launch ransomware attacks and get paid in crypto. 

It seems that these words are destined to become real regulations. The Russian Central Bank is reportedly working with commercial banks to prevent the transfer of money to crypto exchanges. This would be a disguised ban

The BCR has repeatedly expressed its scepticism about cryptocurrencies because of their volatility and the risks involved. 

A digital rouble to curb cryptocurrencies

In fact, this attitude reveals a desire to defend the local currency, the rouble

Russia is also reportedly entertaining the idea of launching its own CBDC. This move would respond to the demand of citizens and investors for a digital tool for quick payments and would also allow the government to limit the spread of cryptocurrencies or other private currencies. 

However, this would not be a concrete project at the moment. The launch is far off. 

 

Eleonora Spagnolo

Journalist passionate about the web and the digital world. She graduated with honours in Multimedia Publishing at the University La Sapienza in Rome and completed a master's degree in Web and Social Media Marketing.

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