The Bank of Russia has asked stock exchanges not to list crypto-related companies.

Spread the love

 56 Interactions,  2 today

The new stock exchange recommendations of the Bank of Russia do not apply to central bank digital currencies and authorised digital assets issued in Russia.

As global cryptocurrency companies consider going public, the Russian central bank has officially advised local exchanges to avoid listing crypto-related items.

The Bank of Russia issued an information letter on Monday, asking Russian stock exchanges to stay away from listings of foreign and local companies involved in a broad range of crypto services.

The central bank went on to say that local exchanges should not list stocks issued by companies whose revenue is based on crypto market prices, such as digital financial assets issued outside of Russia, crypto-tracking indexes, crypto derivatives, and crypto funds. The Bank of Russia also advised asset managers to keep these instruments out of mutual funds.

The bank emphasised that stock exchanges should specifically avoid providing non-accredited investors with access to these investment services.

RECOMMENDED READ:  The9 signs a green Bitcoin mining agreement with the Russian company BitRiver.

“The Bank of Russia’s recommendations aim at a preventive measure — they are designed to prevent a mass investor adoption of such instruments,” the bank stated in an official notice on Thursday. The recommendations do not apply to central bank digital currencies and authorized digital assets issued in Russia, the statement reads.

According to the central bank, cryptocurrencies and digital assets are associated with high volatility, opaque price discovery, low liquidity, as well as technological and regulatory risks. “Purchases of financial instruments linked to such assets entail increased losses for people lacking sufficient experience and knowledge,” the bank added.

The latest move by the Bank of Russia demonstrates the institution’s reluctance to embrace the cryptocurrency industry, echoing similar restrictions in countries such as China. As previously reported, the Russian central bank has barred major local banks like Tinkoff from offering cryptocurrency trading.

 

Leave a Reply

Contact Us