Legislatures in Russia Agree to benefits of Crypto, but Call for Regulations

State Duma, the lower house of the Federal Assembly of Russia, is planning to boost investor protection measures regarding crypto investments. This legislative body plans to implement regulations that will govern the trade of digital assets, given that they are a highly risky financial tool.

Legislators Concerned over Risky nature of Crypto

A local publication has stated that the Russian government is going back on its negative stance against cryptocurrencies. According to the Head of the Duma Committee on the Financial Market, Anatoly Aksakov, digital currencies were highly risky, but they could bring in major profits, which called for a clear regulatory framework.

“Digital assets are the topic of our close attention, and here we will look at how to maximally protect our citizens when investing in digital currencies and digital assets, because there is a new tool, and it is quite difficult for an unskilled investor,” Aksakov stated.

However, this move has not been embraced by everyone. Alexander Abramov, an executive at the Institute of Applied Economic Research, stated that digital currencies should not be restricted because they had positively contributed to the economies of Western countries. Furthermore, these assets were attractive to investors and competed with government monetary projects.

The founder of Alor Group investment banking firm, Anatoly Gavrilenko, had earlier stated that cryptocurrencies represented the people’s freedom, and even if authorities banned them, people will still for alternative ways to invest in these assets.

Crypto Regulatory Framework in Russia

The general sentiment regarding cryptocurrencies by Russian authorities has been negative. In June, the Chief of Russia’s Central Bank, Elvira Nabiullina, stated that investing in digital assets was highly risky compared to any other investment strategy. She also warned people that they would lose much money in these investments.

“Speculative crypto assets are surely the most dangerous strategies of all. The Central Bank never gives advice, where to invest, but in this particular case – here one should definitely not invest,” she stated.

Another warning to those planning to invest in the crypto sector was given by a member of the board of the Bank of Russia, Sergey Shvetsov, who stated that investing in Bitcoin was highly risky and was as dangerous as walking into a minefield.

Despite these harsh sentiments, investors in the country have been active in engaging in cryptocurrencies. A recent survey conducted in the country found that 77% of investors supported that digital assets were a forward-looking investment option. Moreover, 9% of respondents in this survey stated that Bitcoin was a better investment option than gold.

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