thecoinrepublic.com
- The country’s central bank, which regulates the industry, warned on Thursday that stock exchanges in Russia should not sell investment products based on cryptocurrency prices
- Russian stock exchanges should not sell investment products based on cryptocurrency values, according to the country’s central bank, which supervises the industry
- According to the regulator, the prohibition does not apply to central bank digital currencies or digital assets produced in accordance with Russian law and registered with the Bank of Russia
The country’s central bank, which supervises the industry, said in a statement on Thursday that stock exchanges in Russia should not sell investment products connected to cryptocurrency values. Stock exchange operators should avoid listing any securities, such as exchange-traded funds, that provide payments based on the prices of cryptocurrencies, digital assets issued abroad, cryptocurrency price indexes, crypto derivatives, and securities issued by cryptocurrency-related funds, according to notice and explanatory letter published by the Bank of Russia. Asset managers should keep such assets out of mutual fund portfolios, and brokers should not sell them to unqualified investors.
Russia’s equity markets are regulated by the bank’s Securities Market and Commodity Market Department. The rule is intended to prevent ordinary investors from having access to goods that they may not fully comprehend. c. Those who lack expertise and professional understanding are at significant risk of losing money if they purchase investment products linked to them.
Recently on June 30, 2021, according to the Bank of Russia’s screening program for the second half of 2021, a risk evaluation for cryptocurrencies such as Bitcoin (BTC) has been scheduled. Systemic risks connected to cryptocurrency investment by Russian persons and entities will be examined as part of the investigation into the possible hazards of cryptocurrency investing. The Bank of Russia mentioned that they would gather data from 15 credit companies, including significant banks such as Sberbank, VTB, and Tinkoff Bank, payment systems such as Visa and Mastercard, and electronic payment providers such as Western Union, Qiwi, and WebMoney, as part of the inquiry.
The prohibition does not apply to central bank digital currencies or digital assets created in conformity with Russian legislation and registered with the Bank of Russia, according to the regulator. In June 2020, Russia enacted legislation governing digital assets.
More rules were introduced earlier this year, barring Russian public officials from possessing cryptocurrency and requiring election candidates to declare their cryptocurrency holdings. Meanwhile, Russia’s civic and political activists, as well as independent journalists, have been actively using bitcoin (BTC, +0.85 percent ) for fundraising.