The Bank of Russia asks stock exchanges not to list companies involved in crypto

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

The Bank of Russia asks stock exchanges not to list companies involved in crypto

The Bank of Russia issued a letter, asking stock exchanges across the country to stay away from listings of foreign and local companies involved in a broad range of cryptocurrency-related services.

Russian bank elaborated that local exchanges should not list stocks issued by companies whose business relies on crypto market prices, including digital financial assets issued outside the country, crypto-tracking indexes, as well as crypto derivatives and crypto funds. 

The bank also recommended asset managers to exclude these instruments from mutual funds, and emphasized that stock exchanges should particularly avoid providing exposure to these investment services to non-accredited investors.

“The Bank of Russia’s recommendations aim at a preventive measure — they are designed to prevent a mass investor adoption of such instruments,” reads the official notice. The recommendations do not apply to central bank digital currencies and authorized digital assets issued in Russia, according to the statement.

The central bank further stated that cryptocurrencies and digital assets are associated with high volatility, opaque price discovery, low liquidity, as well as technology and regulation-related risks. 

“Purchases of financial instruments linked to such assets entail increased risks of losses for people who do not have sufficient experience and knowledge,” the bank added.

The latest move from the bank showcases the institution’s reluctance to embrace cryptocurrency industry, echoing similar restrictions in countries such as China. The Russian central bank has been withholding major local banks such as Tinkoff from offering cryptocurrency trading.

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