Russia forms an organisation to defend cryptocurrency traders

The Russian Ministry of Justice registered the National Union of Private Traders and Investors on the Financial Markets. One of the union’s areas of activity will be to improve the legal regulation of the cryptocurrency market.

The founders of the nonprofit organization are experts and lawyers independent of the exchange industry.

Currently, there are nearly 9 million traders in Russia, a sevenfold increase over five years. However, according to the union’s founders, trading has been taken outside effective judicial oversight.

“The current legislation does not provide adequate protection for private traders’ interests, so we assembled a group of specialists who will work on creating a conducive legal environment. Our main goal is to ensure a balance of market participants’ interests,” said the co-founder of the union and chair of the Commission on the Legal Provision of the Digital Economy of the Moscow Branch of the Association of Lawyers of Russia, Alexander Zhuravlev.

The association will create a pool of minority shareholders of Russian exchange platforms. In cooperation with brokers, the union will offer special tariffs on their services.

Participants will be given the opportunity to improve financial literacy and qualifications in the main directions of trading and investment free of charge.

An insurance fund will also be formed to pay compensation to member-traders whose interests could not be defended in court.

According to the organization’s chairman Ilya Korovin, they have already received more than 400 applications for membership. In the future, the number of participants is planned to rise to 10,000.

According to a World Gold Council study conducted in October 2020, cryptocurrencies entered the top-5 most popular instruments among Russian retail investors, overtaking gold.

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