The Bank of Russia seeks to regulate the total amount of digital assets that individual investors can buy. The central bank has published a draft of regulatory proposals highlighting how they will regulate the nation's digital assets space.
The Russian central bank is now proposing a bill that will limit the number of digital assets held by non-qualified individual investors annually.
As per the proposal, the Bank of Russia states that non-qualified investors will not be permitted to acquire digital assets above 600,000 rubles or about $7,800. However, qualified investors will not have to adhere to this limit.
According to the regulator, the new limit will help in the recently approved crypto law's operationalization, specifically on the digital financial assets.
To be deemed as a qualified investor, one must meet 1 of the following five criteria:
- Hold an economics degree.
- Own securities totaling more than $74,400
- A net worth of 6 million rubles (~$74,400)
- Have over two years of experience working for a financial organization
- Trade significant amounts of securities regularly.
According to the publication, the curbing will apply to both digital financial assets and various digital rights. The statement reads:
“Individuals representing unqualified investors will have a limit on the amount of digital financial assets for annual purchase at a total of 600 thousand rubles.
The limit for the acquisition of digital rights for unqualified investors who hold both digital financial assets and other digital rights is set at 600 thousand rubles for digital financial assets and 600 thousand rubles for other digital rights.”
The Russian central bank is asking for feedback and opinions about the proposal from the public. Those willing to provide their input have until Oct. 27. The restriction is set to be enforced from Jan.1, 2021.
The Russian central bank also released a distinct proposal touching on how those willing to issue digital assets should register.
Notably, the new restrictions will apply to digital assets, which will be offered when the new digital assets law is enforced. Lawyer Mikhail Uspensky, who spoke to CoinDesk, stated, “Such tokens don’t exist yet, so the document is written for the future. The law will only come into force in January , and cryptocurrencies are not mentioned in it at all.”