The ban on cryptocurrency advertising in Russia is planned to be enshrined in legislation: this was announced by the chairman of the State Duma Committee on the Financial Market Anatoly Aksakov at the St. Petersburg International Legal Forum, reports Frank Media.
What Exactly They Want to Restrict
According to Anatoly Aksakov, the changes will affect regulations related to the promotion of cryptocurrency instruments. Advertising of digital currencies should be prohibited, but companies operating in this market will retain the right to inform about their activities without a direct call to buy cryptocurrency or invest in it.
“We are changing the legislation related to advertising. We prohibit advertising cryptocurrencies, but at the same time we give organizations that work in this market the opportunity to say that they operate in this market,” said Anatoly Aksakov.
In other words, the authorities want to separate direct promotion of cryptocurrency and neutral information about the work of industry participants. In this logic, advertising may include communication with a call to buy an asset, a promise of profit, or an emphasis on investment attractiveness. Neutral information is a message that a company operates in the digital currency market, without encouraging purchases or investments. This approach may affect services related to digital currencies, blockchain infrastructure, as well as public materials about such instruments as Bitcoin and other crypto assets.
Why Regulators Are Tightening Control
Earlier, Deputy Chairman of the Bank of Russia Filipp Gabuniya stated that unqualified investors in Russia need additional protection from risks associated with crypto assets. The Central Bank believes that private investors may underestimate volatility and technical threats in this market.
The draft law “On Digital Currency and Digital Rights” provides for a set of measures that should reduce risks for retail investors:
- Restriction of the list of digital assets available for purchase
- Introduction of investment limits
- Stricter cybersecurity requirements for infrastructure
For an investor, digital currency may look like a promising asset, but in accounting and legal regulation, such an instrument requires a special approach. That is why the authorities are separately discussing not only the circulation of cryptocurrencies, but also the rules for their public promotion.
What Bills Are Already in the State Duma
In April, the government sent two draft federal laws to the State Duma. They concern the regulation of the circulation of digital currencies and further adjustment of legislation in the field of digital rights.
On April 21, the lower house of parliament approved these initiatives in the first reading. Now the discussion continues around more specific restrictions, including a ban on cryptocurrency advertising and additional requirements for market participants.
