Some significant moves have been made by the central bank in Russia for structuring the crypto space within the country, as they are gearing up for a push towards crypto adoption. In its new policy, the bank has decided to set a limit on Bitcoin that can be held by ‘non-qualified investors’. A policy note had been published by the Bank of Russia earlier this week in which they had announced that non-professional investors would now be restricted to purchase a specific quantity of digital assets. In the notice, the bank elaborated that these investors would be limited to 600,000 Russian Rubles a year, which is the equivalent of $7,800.
This limit would be applicable to all ‘digital rights’. The Bank of Russia also outlined its regulatory competence in the note regarding ‘On Digital Financial Assets’. This is a new crypto law that was passed by the Russian parliament back in July. Under the law, the central bank has the right to determine who would qualify as an investor and who wouldn’t. The law also gives the bank the right to decide what features of digital financial assets would be made available to these investors. Most notably, the crypto law that was approved in July didn’t provide any information regarding the crypto limits available to particular investors.
However, it should also be noted that Russia is in the process of introducing another cryptocurrency bill, which is titled ‘On Digital Currency’. It remains unclear whether this law would support the claims of the central bank about how they expect Russia to move forward in regard to crypto adoption. However, the new law is expected to pass during State Duma’s autumn session, which is scheduled in December. As far as the first crypto bill is concerned, it will become applicable in Russia from January 1st, 2021.
On the same day, the new limits introduced for investors regarding investing in digital assets would also be applied. Until then, members of the public have been asked by the Bank of Russia to share their thoughts regarding this measure. The limits imposed on investors’ access is just another in the series of attempts made by the Russian government to maintain tight control of the crypto space. Since the crypto bill was passed into law, a number of government agencies have introduced controls within their industries for accommodating crypto services. But, some of them have taken things a bit too far.
Last month, it was announced by Binance, top crypto exchange that the Russian telecoms regulator had blocked its website in the country. According to the announcement, Binance was put on a blacklist by the regulator due to how it distributes data related to the acquisition of digital assets. The head of operations for Binance in Russia and the CIS, Gleb Kostarev said that they had made the announcement immediately after they were informed by the regulator. The exchange said that they hadn’t even been given a proper warning before they were placed on the blacklist.