The department believes that the restriction on the purchase of digital assets of 50 thousand rubles for novice investors will reduce the risks of investing in this sector
The Ministry of Finance proposed to set a limit on investments in cryptocurrency for novice investors in the amount of 50 thousand rubles. The Bank of Russia responded to the ministry’s proposal, Forbes reported. The regulator believes that the restriction of 50 thousand rubles for novice crypto-investors will not remove the risks of investing in this sector, and the participation of regulated financial institutions in the circulation of digital money will create an “illusion of state protection” for people. Instead of introducing a limit, the Central Bank proposed to ban the circulation of digital assets.
On February 15, Andrey Lugovoy, First Deputy Chairman of the State Duma Committee on Security and Anti-Corruption, stated that the Russian government is not considering the option of banning cryptocurrencies in the country.
RBC-Crypto experts explained whether the Russian authorities are able to set limits on investments in cryptocurrency and what consequences this may have for Russians.
“Forced Sale of Assets”
Boris Romanov, Attorney at AB S&K Vertical
The proposal of the Ministry of Finance is aimed at restricting access to the purchase of cryptocurrency by small investors-individuals. Since the topic of cryptocurrency is relevant and constantly being heard, there is an interest in buying cryptocurrency by ordinary citizens who do not constantly operate in the stock or crypto market. Such persons often acquire assets in the amount of fewer than 50 thousand rubles.
It is quite possible that exchanges or brokers officially operating in the Russian Federation, after the adoption of restrictions, will be required to forcibly sell the assets of unqualified investors in cryptocurrency at the current market value and transfer funds to such investors.
Most likely, the responsibility for violating the new rules will not apply directly to investors, but to brokers or crypto exchanges that have accounts of unqualified investors. Acceptance of such a proposal looks quite realistic. There is already experience in introducing restrictions for unqualified investors to trade in certain financial instruments on the stock market. Probably, the regulator expects that such restrictions will contribute to the stability of the market.
“50 thousand rubles is enough to try your hand at the stock exchange”
Alexander Guskov, Partner at Guskov & Associates
The idea of restrictions for unqualified investors is correct. However, it is too early to talk about it yet there is no regulation of the circulation of cryptocurrencies. A limit of 50 thousand rubles is enough to try your hand at the exchange, but this is not enough for buying NFTs or staking – commissions can be higher than the threshold. However, perhaps this is the goal of the Ministry of Finance.
Now the decision to assign the status of a qualified investor is made by a bank or a broker. How this will work in the case of crypto assets is unclear. If you follow the path proposed by the Ministry of Finance, then it is very easy to introduce the restriction – the decision will still be made by Russian banks.
Whatever regulatory path we take, restrictions for unqualified investors are possible only when the purchase of cryptocurrency is allowed through large regulated players licensed by the Central Bank. And no anonymity. Too strict requirements for qualified investors are useless – a market for intermediary pools may arise. It turns out that by reducing some risks, the regulator will create others.