Bank of Russia Asks Exchanges Not to List Crypto-Related Instruments

The Bank of Russia announced on Thursday that Russian exchanges were not recommended to list investment products related to crypto.

As detailed in the announcement, securities of Russian and foreign issuers to trade, payments for which depend on cryptocurrency rates, prices for foreign digital financial assets, changes in cryptocurrency and cryptoasset indices, as well as the cost of crypto derivatives and securities of cryptocurrency funds are not allowed.

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Besides, managers should not include these assets in mutual funds, and brokers and trustees are advised to refrain from offering pseudo-derivatives with such underlying assets to unqualified investors.

The bank notes that cryptocurrencies and digital assets are characterized by high volatility, lack of transparency in pricing, low liquidity, technological, regulatory and other specific risks. The purchase of financial instruments linked to them entails increased risks of losses for people who do not have sufficient experience and knowledge. 

The Bank of Russia recommendations are a preventive measure. Restrictions do not apply to digital national currencies if they are released into circulation. Restrictions also do not apply to digital financial assets issued under Russian law in information systems whose operators are included in the register of the Bank of Russia.

This month, Fazzaco reported that more than 1,800 financial firms were blacklisted​ by the Bank of Russia, including some highly renowned FX brokers that are licensed by other countries.