Russia Wants to Limit the Purchase of Cryptocurrency

The Central Bank of Russia is considering limiting the purchase of digital currencies by unqualified investors in the country.

Foreign exchange regulators have issued draft directives for defining the characteristics of digital financial assets and are ready to establish rules for qualified and unqualified investors to invest in such instruments.

The proposed structure hopes to limit investments in any cryptocurrency instruments of all unqualified individuals and entrepreneurs to no more than 600,000 rubles per year, which is approximately $7,779.

On the other hand, qualified Russian investors can invest in digital assets in accordance with foreign legislation

Regulatory authorities are seeking public discussion of the project by October 27. If the bill is approved, the restrictions will take effect from January 2021.

Russia and cryptocurrency

Earlier this year, Russia legalised a digital currency it calls property, but banned the use of cryptocurrency as payment transactions. The bill, signed by the President of Russia, will enter into force in early 2021.

However, legislatures in the country want to establish strict rules for those involved in digital asset transactions.

Earlier, the Ministry of Finance of Russia submitted for discussion a bill providing for criminal punishment for hiding information about investments in digital assets from supervisors. Any violations will be strictly suppressed, the perpetrators will be punished, in some cases up to imprisonment. Another proposal in circulation is to decriminalise any cryptocurrency transactions involving payments or exchanges.

In addition, last month, the crypto exchange Binance was required to provide detailed information on the acquisition of digital currency.

In parallel, the Bank of Russia began considering the possibility of using digital rubles and recently issued a consulting document.