The Bank of Russia has issued a recommendation for local stock exchanges, asking them not to list stocks of any companies with their businesses tied to cryptocurrencies.
July 22, 2021, | AtoZ Markets – The Central Bank of Russia has issued an information letter for local stock exchanges, in which it recommended them not to list “securities of Russian and foreign issuers, payments for which depend on cryptocurrency rates, prices of foreign digital financial assets, changes in cryptocurrency and cryptoasset indices, as well as the cost of crypto derivatives and securities. securities of cryptocurrency funds “.
In addition, management companies are encouraged to refrain from including such assets in mutual funds, and brokers and trustees are encouraged to refrain from offering “pseudo-derivative financial instruments with such underlying assets to unqualified investors”.
Bank of Russia speaks of cryptocurrencies as high-risk assets
The Bank of Russia emphasizes that cryptocurrencies “are characterized by high volatility, lack of transparency in pricing, low liquidity, technological, regulatory and other specific risks,” and the acquisition of financial instruments tied to them entails increased risks of losses for unqualified investors.
Read also: Russian Forex Dealers Are Seeking Permission to Work with Cryptos
Separately, the regulator notes that the restrictions do not apply to national digital currencies and digital financial assets issued under Russian law.
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