Central Bank of Russia Ponders Crypto Asset Buying Power Limits for Unfit Investors in New Draft Bill


It is quite obvious at this point that the trading of crypto assets is lucrative, as evidenced by the number of individual and institutional investors that are falling over to get into the crypto game.

Unfortunately for investors in Russia, they might find themselves unable to access crypto assets. This is because the Russian Central Bank is considering limiting access to crypto assets for those deemed as ‘unqualified investors’

To achieve this, they intend to amend the “On Digital Financial Assets” Crypto bill that recently passed its second reading at Russia’s parliament, the State Duma.

Details on the Proposal

Rather than institute a blanket ban on crypto investment, the Central Bank Suggests that a limit be placed on how much money can be invested by certain classes of investors in crypto. The amount in question would be $9,100 per year which is the same amount recommend to be placed as limit on crowdfunding projects in a draft bill that is also in the process of being reviewed by Russian parliament.

Should this recommendation eventually become a law, unqualified investors can still purchase crypto assets and sell under existing bank laws, even without an intermediary.

As for what makes an investor ‘unqualified’, the Russian Central Bank defines this as an investor who has less than a year of minimum investment experience. To then qualify as an experienced investor, they need to have spent at least 2 years working for a firm that is qualified as an investment firm for the government and then applies for a qualification certificate.

More on Middlemen

The proposed laws do not only apply to middlemen but to intermediaries who work with them. Should the law pass, all banks, depositories and stock exchanges will be required by law to report all amounts of money used for crypto trading by unqualified investors to the government.

The Russian government wanting to restrict the activities of unqualified investors is rather telling and could very well be a means of investor protection. The crypto industry is known for its volatility and should large numbers of unqualified investors consistently make uninformed investment moves, it could cause a negative effect in the market.

At the same time, this law could be looked at as unnecessarily restricted and even oppressive by those who feel that the crypto market should be free for all to enter as they like. Should the law pass, there will certain be some level of pushback.

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