Thoughts on Russia limiting novice traders to invest only $3800

So, Russia's got this new rule where they’re letting newbies put only 3800 bucks into crypto unless they can prove they really know their stuff about trading or investing. I kinda see it as a positive move since they seem to want to protect their folks from losing cash in the crypto market, which is chaotic for beginners. But then again, it feels like the government is sticking its nose into people’s financial choices. Makes me curious if they have similar limits for stocks or other types of trading too. What do you guys think about this move from a trading perspective? Good idea or not?

It definitely has a basis. They wouldn’t come up with a policy like that to limit newbies if they weren’t already seeing reports of beginners losing money in crypto investing or trading. From how I see it, they’re just trying to minimize risk, and if that’s for the good of the majority, then it’s a reasonable move. And based on the news, professional traders won’t have those limits anyway. So overall, it looks like a good bill. https://www.tradingview.com/news/cointelegraph:97f83ab95094b:0-russia-plans-limited-crypto-access-for-retail-investors-lawmaker-says/

Honestly, I don't care, because I'm not Russian and I don't think that such regulations would ever be imposed in other countries. I can see the reasons behind such regulation, but I wonder how the Russian authorities are going to examine the level of crypto knowledge and experience of the crypto exchange traders. Taking a certain kind of "crypto test" seems like the most obvious option, but the answers of such tests can be leaked and published online. Such regulation can only make more Russian crypto traders to leave the Russian cryptocurrency exchanges and open accounts in foreign crypto trading platforms.

At first glance, this seems like "caring" on the part of the state, but is it really so? Let's look at the situation differently. Does the state restrict its citizens from participating in lotteries or gambling (in monetary terms)? No. In other words, citizens can effectively lose an infinite amount of money on the lottery \ gambling. Or the traditional stock market: there are no limits on investment amounts here either. I would call this excessive concern for the wallets of its citizens. Yes, Russian citizens must use brokers to trade stocks, but the most important issue is taxation. Income from securities is taxable. Could this be the reason for the "excessive government intervention in citizens personal finances"? I assume that the income from the $3,800 invested will also be taxed. From an investor's perspective, any restriction on "freedom of action" is bad, as it prevents investors from fully "taking control of their financial lives". As far as I know, there are no limits on the amount of investment in securities, especially domestic stocks. Such restrictions appear to be attempts to influence the "direction" of investments and force investors to invest in the traditional (easily controlled) securities market (domestic) and stimulate the domestic economy.

You do not even need to go to what is not related to cryptocurrencies. The exchange that people on this forum talked bad about because it is a shady exchanges called Yobit, it is a Russian exchange. The exchange is used very well by Russians. Go to other centralized crypto exchanges and go through the lists of countries that are allowed to register and make use of their exchanges, Federation of Russia is always among them. People of Russia are using the centralized exchanges that also support future trading.

I am seeing this as a good step, as they don't want their people to lose their money, and if they don't have much knowledge about the crypto space, then they are making this kind of rule so that people do not gamble with their earned money and do not get trapped in the crypto space. Whatever I have experienced so far is that many users just start to invest their earned money in the crypto space without having sufficient knowledge about it. Many join Telegram channels from where they get rubbish/shit signals and think that they will earn money from those signals, haha. This is just like you are playing bluff without zero knowledge. Other than this, one should only invest in the crypto space if they think and feel that they are ready to jump into this space. One more thing is that it is crystal clear that if one is jumping directly to trader space, then it is 100% sure that persons need too much knowledge about the market, as he needs to learn about TA(technical analysis) and FA(fundamental analysis). One needs to learn to make safe themselves from FOMO, FUD, etc. But starting from investing in bitcoin for a long time with having little knowledge fits more better as a newbie in this space. This is my point of view on this. DYOR!

I'm not from Russia, but if this happened in my place. I don't think I'd be glad LOL—personally speaking. I see the pros but... I just don't need another reason for the government to snoop on my affairs as this would definitely entail some tracking on their end, no? And I wouldn't be surprised if they end up banning privacy oriented exchanges as well. Who knows how will they measure your knowledge as well. IMO it can be good or a nothing burger.

The news is not all bleak if you read it all and not just the excerpt in the OP. And yes it is still a bill and isn't law yet. Cryptocurrency is regarded as a property in Russia and the government banned its use as a payment. But i believe that is set to change if this bill is passed into law: If this happens, then i guess people will be able to spend crypto, which includes bitcoin. Russia has been hit with a load of sanctions since the invasion of Ukraine and now they are set to relax some of their crypto rules, set a clear regulatory framework for crypto and crypto services. That said, the idea of a cap for "inexperienced" traders sounds like bullshit, how do you qualify one as "qualified".

For newbies who do not have much experience and knowledge about crypto, limiting is a good way to avoid their citizens losing investments in crypto, but the $3800 is still a high limit. I don't know how much the value of their money is there, but here that's a huge amount of money. I'm fine with $500 limits for newbies it's a good start to explore crypto. Until they gain knowledge and know how to avoid scam project.

Yes it’s a good one to limit newbie’s so they won’t lose huge amount of money because if they are not limited and they lose huge amount of money they will sure enter into frustration and that frustration can lead them in committing different kind of crime so the government doing this is just a way to protect there citizens from frustration and also from getting scammed. I love the step taken by the government and yes they should have even reduced the money because to me $3800 is still a huge amount of money.

Russia is a funny country but I'm not surprised, this is a country that pay 22k rubles as minimum wage, 300k rubles will sound like a millionaire in their country. If you are looking for one country that doesn't like crypto, I think Russia are one of the pack that don't like crypto, I'm not sure if Bitcointalk is still allow in that country but last I check, you have to byepass with a vpn. This games they are playing suck but it didn't began today, it's been a very long time since they started. There is a lot of questions I will love to have some answers, like what happened to dollar cost average. If I decide to use $100 every week to be buying Bitcoin, that means if I hit 30k weeks, I wouldn't be able to buy again until I show that these ones I have bought is worth it but DCA isn't even designed work that way, it's a long term commitment of buying, I don't have to prove anything to anyone if I don't, why all this energy assertion on crypto and not their local traditional assets, this is wrong.

I am fine with no limit. People who look to get involved in crypto ought to do their homework and understand their appetite for risks, confining them to a certain limit makes no sense if you aren't going to do it for other assets, except the government somehow believes that crypto is the only risky asset out there, which is very false. That said, another hurdle is how you get to decide who has sufficient knowledge to go above that cap. I read the news and there was no hint of how they are going to doing it, maybe because even they have not thought it through.

This may look as though the country cares for the people and not allowing them to just risk money into an investment that is volatile and the outcome of a good profit is not guaranteed. On a more serious note, limiting the citizens to a certain amount of money to invest can be said to him as imposing financial constraints on them even when they have the money and are willing to go higher than that. There is a hidden agenda to this because the government can’t just keep regulating cryptocurrencies like this and leave the rest investable assets to thrive. Waiting to see the implementation and activeness of this by the Russian government.

That's actually a good one, limiting the inexperienced investors and traders with that amount they're going to spend with their trades and investments in crypto. And so, they have to prove that they're profitable so that they can continue adding more if they can. One thing about here is the possible tracking of who are great profiters and the taxation that can be applied to them. I guess it's part of the scheme that the government is about to do so that it can be easy for them to track who are the truly profitable citizens.

Limit is okay as long as it really helps unexperienced trader to avoid bigger losses and truly with that intention. The problem is, how do you qualify to be experienced trader and escape that $3800 limit? there must be certain criteria and it might be difficult to meet. I also think that $3800 is too low of a number.

What right does the State have to tell me what to do with MY own money. That merely shows that YOU are their slave. Plus they probably don't want YOU to hedge more than $3,800 against the financial system they support. - The exploitative legacy financial system.

Exactly, that's what I'm thinking too. Why do you need to limit it? Is it your money? If you lose, it's your own responsibility because you weren't careful. And $3000 isn't that big of an investment, after all, it's tiny, especially if you're also thinking about a bigger return on your investment. Maybe that's okay in the beginning, but maybe there's no need to limit it if you've been doing what you're doing for a year, and you're actually earning money. To me, it looks more like a control to just limit the amount that each person can deposit in Russia.

This is just a draft law, which means it has no legal force and it is unknown whether it will be adopted in this form or whether significant additions will be made. Nevertheless, it is not clear to me how the state will be able to control a trader if he trades on a decentralized exchange.

Governments are used to controlling their citizens financial lives through their fiat, they print it how they like and they implement financial policies that influence the money in our pockets. That is why it is so difficult to find a government that enjoys their citizens using bitcoin, because what that does is take some financial control out of their hands. That said, people are currently not allowed to spend bitcoin as payment in Russia and the government is trying to ease that, but in doing so, they also want to roll out this weird law about a cap on crypto trading.

My heart and my brain is in a battle whenever there are regulations like this. My brain tells me that I am a liberal and whenever governments ban something from people, I hate it because governments only job is to make sure law is followed and nobody is hurting others, but we should be able to do stuff like these ourselves, gambling? trading? even some drugs, we are adults and we have our own minds and if we are hurting only ourselves and nobody else, then we should be able to do it. Whereas my heart is telling me I pity these newbies who lose their wealth all over bad trades and this is a good thing. So I am not sure which one to believe, but I think I still believe governments should not be doing this to people.