Russia is considering bringing in legislative restrictions of “unqualified investors in cryptocurrencies and crypto assets”. According to the head of the Duma Committee on the Financial Market, the move is in order to “protect private investors”.
The cryptocurrency market is booming. China has banned bitcoin mining and also any transactions that deal with crypto assets. Central banks around the world are racing to put out their own versions of digital assets called central bank digital currencies (CBDCs).
Hands that hold private digital assets, such as cryptocurrencies, are becoming stronger as the realisation hits that you can be your own bank by holding these assets. They are yours, and no government, bank or any other organisation can take them away from you or tell you what to do with them. At least the technology does not currently exist for that to happen.
Russia is a state with much in common with China. Those at the top own everything and wield incredible power. At least they make a show of looking after their citizens though, if the same can’t be said for China.
However, it appears that Russia is as deeply worried as China at the prospect of its citizens being able to circumvent their fiat monetary system. The more that opt out of a deeply unfair system, rigged to keep citizens enslaved, the less power those at the top will control.
Anatoly Aksakov, head of the Duma Committee on the Financial Market, was quoted in an article on the Russian internet site Interfax. He stated:
"Digital assets are a 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 here is a new tool, and it is quite difficult for an unskilled investor,"
So, whether the “unskilled investor” likes it or not, he will be closed out of any profit-making opportunities, just as happens in the traditional financial system. The difference is though, that the existing system is rigged, and there is no way out because those at the top set the rules.
How do you rig cryptocurrencies like Bitcoin? A system based purely on mathematics can’t be rigged. There are no middle-men to suck out much of the profit. There is no possibility of injecting massive amounts of currency into the system in order to prop up banks and other financial institutions.
Aksakov continued with his paternal consideration for Russian retail investors, when referring to the proposed legislation:
"Here, of course, we need to prescribe in the legislation the norms that will protect an unqualified investor in ill-considered investments in digital currencies,"
As mentioned earlier, those “ill-considered investments” are worrying Russia, China, and most of the fiat-based countries of the world. Should the private investor continue to make these types of investments, trad finance becomes side lined. It could even sound the death knell for fiat currencies as we know them.
