Russian Finance Minister Anton Siluanov today warned about what he has described as the extremely high risks that come with buying speculative products, including cryptocurrencies like Bitcoin, as such investment products are increasingly being marketed to ‘ordinary investors’.
In a similar vein to the message earlier this month, Siluanov said in an interview with Rossiya 24, a Russian state TV channel, that cryptocurrencies should be traded only by professional investors. “Professional market participants should work with crypto-currencies, not ordinary people,” he said.
Typically, retail traders are currently offered crypto instrument trading through contracts for difference (CFDs), which allow them to speculate on a change in price of a cryptocurrency such as Bitcoin using leverage.
Nevertheless, the number of forex brokers that are planning to restrict trading on cryptocurrencies due to overexposure to its one-sided uptrend is growing bigger. Among the latest entries into this group of brokers was Polish FX brokerage XTB.
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Sources with knowledge of the matter have recently shared with Finance Magnates that a number of brokers are materially reducing their exposure to cryptocurrencies.
The notice comes a few days after reports from Moscow last week indicated that a State Duma committee will submit the draft law on the regulation of cryptocurrencies on December 28, with the new rules likely to be passed by the end of March 2018.
The latest draft law defines cryptocurrencies as “another property of a special kind”. However, it does not yet describe the rules of taxation or mining activities, which can be considered “an entrepreneurial activity.”
Earlier this month, Russia’s Deputy Finance Minister Aleksey Moiseev told the state-backed news channel RT that his government, while taking steps to legitimize cryptocurrencies, could ban its mining activities as it looks for more control of the digital asset class instead of loosening its grip.
As for the regulation of token sales, also known as ICOs, the bill defines the procedures for crypto fundraisers, and will also impose a registration requirement on those selling the digital assets.