Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, argued that Russia needs to adopt new laws to protect retail investors from the potential losses of investing in crypto, local news agency Interfax reported on Wednesday.
To this end, lawmakers in the country’s parliament are reportedly considering new legislation to limit cryptocurrency investments by non-accredited investors, he stated.
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The official delivered his remarks during a Bank of Russia-backed event devoted to financial consumer protection.
“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 said.
Cryptocurrency investment is associated with a lot of risk as well as promising returns, with global investors pouring billions of dollars into crypto, Aksakov said. “We certainly need to provide specific legislation to protect a non-professional investor from ill-considered investments in digital currencies,” he stated.
Related: Bank of Russia wants to block ‘emotional’ and suspicious crypto activity
The latest news comes in line with the Bank of Russia’s new plans to slow down transactions to crypto exchanges in order to protect retail investors from “emotional” purchases of crypto. Sergey Shvetsov, the first deputy governor at the Bank of Russia, argued that this measure would protect Russian investors from losses in a scenario where the cryptocurrency market “crashes to zero.”
Cryptocurrencies like Bitcoin (BTC) have emerged as a popular investment tool in Russia. According to an August survey by Russia’s Association of Forex Dealers, 77% of Russian investors said that cryptocurrencies are the “most forward-looking” investment.
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