The country’s central bank, which supervises the industry, stated on Thursday that stock exchanges in Russia should not list investment products tied to cryptocurrency values.
Local exchanges should not list stocks issued by companies whose operations rely on crypto market pricing, such as digital financial assets issued outside of Russia, crypto-tracking indexes, crypto derivatives, and crypto funds, according to the central bank.
Asset managers should also keep such securities out of mutual fund portfolios, and brokers should not sell them to unqualified investors.
Russia’s equity markets are regulated by the Securities Market and Commodity Market Department of the bank. The bank stated that the decision is a preventative measure against high-risk exposure to such assets. In an official statement, the bank said: They’re meant to deter large-scale adoption of cryptocurrency by the general public.
The reasons for the Russian central bank’s advice were explained. According to the bank, digital assets and cryptocurrencies face a number of challenges, including regulatory risks, low liquidity, a difficult price discovery process, and high volatility. As a result, purchasing financial instruments linked to such assets is extremely risky and can result in significant losses for investors with limited knowledge and experience.
The regulator clarified that the ban does not apply to central bank digital currencies or digital assets issued in accordance with Russian law and registered with the Bank of Russia.
The latest move by the Bank of Russia highlights 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 prohibited major local banks like Tinkoff from offering cryptocurrency trading