Stock exchanges in Russia should not list investment products related to cryptocurrency prices, said the country's central bank, which regulates the sector, with a goal announcement Thursday.
According to a notice and letter published by the Bank of Russia, stock traders should avoid listing securities, such as exchange-traded funds, which provide payments based on the prices of cryptocurrencies, digital assets issued to the foreign currency, cryptocurrency price indices, crypto derivatives and securities issued by cryptocurrency-related funds.
Asset managers should also exclude these securities hold mutual fund portfolios and dealers should not offer such securities to investors.unqualified weavers.
The securities and commodities markets department of the bank is the regulator for the Russian stock markets. The move is designed to prevent retail investors from gaining access to products they might not understand.
"Cryptocurrencies and assets digital technologies are characterized by high volatility, low transparency of pricing mechanisms, low liquidity, technological, regulatory and other risks, "the bank wrote. “The purchase of related investment products exposes people with their professional experience and knowledge to a high risk of losing money.
The ban does not include central bank digital currencies that could be issued or digital assets issued in accordance with Russian data law and registered with the Bank of Russia, added the regulator.
Russia has passed a law regulating digital assets in June 2020. Earlier this year, other regulations have been added prohibiting Russian public officials from owning crypto and mandatory election candidates to declare their crypto holdings. In the meantime, bitcoin has been actively used for fundraising by the Russian company civil and political activists and independent journalists.
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