Russia to Limit Crypto Purchases by Unqualified Investors

Wilfred Michael 

Wilfred Michael

News reporter

12 March 2019,
Russia to Limit Crypto Purchases by Unqualified Investors

The Russian Central Bank will move to restrict the amount of cryptocurrencies that “unqualified investors” can purchase within a year. The country’s constitution classifies as unqualified investor any individual who has less than one-year investment experience.

As per a report by the local news outlet, RBC, the State Duma Chairman, Anatoly Aksasov specified that the Central bank proposal wants to place the minimum crypto purchase for that class of investors at 600,000 rubles (approx. $9,100) annually.

That threshold is the same as what Russian laws specify for crowdfunding projects and will possibly be added as a new sub-section to the country’s bill “on Digital Financial Assets” that is set to come under review in the coming days.

The report further notes that the restrictions do not stop unqualified investors from purchasing digital tokens marketed by Russian Companies, but mandates operators to share the trade information with authorities upon request.

Aside from the restriction that the new bill will impose on unqualified investors, RBC quotes sources close to Russia’s parliament as revealing the following additional details:

  • Exchanges and Banks handling digital asset related transactions for clients will release pertinent data at the request of Russian authorities.

  • Only legal entities such as registered companies or individual entrepreneurs with specific qualifications can issue digital tokens.

  • The Central bank will keep a record of businesses that issue digital tokens to the public.

As has reported in recent times, the journey to full crypto regulation in Russia has taken on increased importance following an order from President Vladimir Putin urging the necessary agencies to define the laws between now and the middle of the year.

Hopefully, whatever laws the country enacts will foster the growth of the crypto ecosystem and allow the emerging industry to flourish on Russian soil.

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