Local news agency Interfax reported Wednesday that Anatoly Aksakov, chairman of the Russian State Duma Committee on Financial Markets, argued that Russia needed to adopt new laws to protect retail investors from the potential harm of investing in crypto.
To this end, lawmakers in the country’s parliament are considering new legislation to restrict cryptocurrency investments to non-recognized investors, he said.
The official made his remarks during a Bank of Russia-backed event dedicated to financial consumer protection.
“Digital currency is subject to our increased focus, and we will strive to provide maximum protection to our citizens who invest in digital assets because it is a new instrument, and it is quite difficult for unskilled investors.”
Cryptocurrency investments are associated with many risks as well as promising returns, with investors around the world investing billions of dollars in cryptocurrencies, Aksakov said. “We must provide specific laws to protect a non-professional investor from unreasonable investments in digital currency,” he said.
Related: The Bank of Russia wants to block ‘emotional’ and suspicious crypto activity
The latest news is consistent with the Bank of Russia’s new plan to slow transactions on crypto exchanges to protect retail investors from “mental” purchases of crypto. Sergei Svetsov, the first deputy governor of the Bank of Russia, argued that the measure would protect Russian investors from losses in a situation where the cryptocurrency market is “at zero.”
Cryptocurrencies like Bitcoin (BTC) have emerged as a popular investment tool in Russia. According to an August survey by the Russian Association of Forex Dealers, Russian% Russian investors said that cryptocurrency is the “most far-sighted” investment.