Bank of Russia asks exchanges not to list crypto-related companies

As global cryptocurrency companies increasingly consider going public, the Russian central bank has officially recommended local exchanges to avoid crypto-related listings.

The Bank of Russia Posted a July 19 newsletter, asking Russian exchanges to stay away from quotes from foreign and local companies involved in a wide range of crypto services.

The central bank clarified that local exchanges should not list stocks issued by companies whose activities are based on crypto market prices, including digital financial assets issued outside of Russia, crypto indices. tracking, as well as crypto derivatives and crypto funds. The Bank of Russia has also recommended that asset managers exclude these instruments from mutual funds.

The bank stressed that exchanges should particularly avoid providing exposure to such investment services to unaccredited investors.

“The recommendations of the Bank of Russia are aimed at a preventive measure – they are designed to prevent massive adoption by investors of such instruments,” the bank said. declared in an official notice Thursday. The recommendations do not apply to central bank digital currencies and authorized digital assets issued in Russia, the statement said.

Related: Russia’s central bank to study the risks of investing in crypto

The central bank went on to say that cryptocurrencies and digital assets are associated with high volatility, opaque price discovery, low liquidity, as well as technology and regulatory risks. “Purchases of financial instruments linked to such assets entail increased risk of loss for people who do not have sufficient experience and knowledge,” added the bank.

Bank of Russia’s latest move further shows the institution’s reluctance to embrace the cryptocurrency industry, echoing similar restrictions in countries like China. As previously reported, the Russian central bank has retained major local banks like Tinkoff from cryptocurrency trading offer.