Russians were told about the impact of cryptocurrency regulation on banks and investors

The Central Bank of the Russian Federation (CBR) has decided to strengthen control over bank investments in cryptocurrencies and cryptocurrency financial instruments, obliging market participants to take such assets into account when calculating capital and mandatory regulations. In addition, the Central Bank is going to introduce requirements for operations with cryptocurrencies and for lending to crypto companies. Fyodor Sidorov, a private investor and founder of the School of Practical Investment, told Izvestia on August 26 about how this will affect banks and investors.

"Stricter regulation will not only not reduce banks' interest in cryptocurrency instruments, but on the contrary, it will increase it. Yes, the new requirements will force credit institutions to be more careful when dealing with cryptocurrencies, and it is also possible to reduce the number of banks that work with this tool," the expert said.

In particular, small banks may stop working with the crypto sector, while large organizations, on the contrary, will increase their share. As Sidorov noted, there is a possibility of a separate structure within banks that will deal entirely with cryptocurrency.

The choice of crypto tools itself will be more conscious and legitimate from the point of view of the law, which, in turn, will attract the attention of investors to these specific positions. Banking expertise will become a kind of indicator of the reliability and protection of investors' interests against the background of a more transparent and secure market.

"Among the negative consequences, we will highlight the likely outflow of capital that was previously directed to crypto tools, other instruments and jurisdictions (not yet regulated), as well as a reduction in innovation in this sector, as legislation, as a rule, does not keep up with new trends," concluded Sidorov.

Hype blinders: memcoins can deprive Russians of 100 billion rubles

More than half of the projects on the market are scams, and even drug dealers issue their coins.

The cost of the second most popular cryptocurrency, Ethereum, updated its historical maximum on August 25, exceeding $4,950. Experts described how this could affect the Russian market and the interest of investors. For the Russian segment, this means an increase in over-the-counter and foreign operations, as there is no full-fledged crypto exchange for a wide audience in the domestic market.

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