New stock exchange recommendations from the Bank of Russia do not apply to central bank digital currencies or permitted digital assets issued in Russia, according to the bank.
Due to the increasing number of global cryptocurrency companies considering going public, the Russian central bank has publicly advised local exchanges to avoid listing any cryptocurrency-related listings.
Earlier this week, the Bank of Russia released an information letter in which it requested that Russian stock exchanges refrain from listing foreign and domestic companies that are engaged in a broad variety of crypto-related services.
To be specific, the central bank stated that local exchanges should not list stocks issued by companies whose business is dependent on the performance of the cryptocurrency market, which includes digital financial assets issued outside of Russia, crypto-tracking indexes, as well as cryptocurrency derivatives and crypto funds, among others.
The Bank of Russia also advised asset managers to eliminate these securities from mutual funds, according to the Financial Times.
The bank highlighted that stock exchanges should avoid offering exposure to these investing services to non-accredited clients in particular, according to the bank.
“The Bank of Russia’s recommendations aim at a preventive measure — they are designed to prevent a mass investor adoption of such instruments,” the bank stated in an official notice published on Thursday. According to the statement, the guidelines do not apply to central bank digital currencies or recognised digital assets issued by Russian financial institutions.
Following that statement, the central bank stated that cryptocurrencies and digital assets are associated with high volatility, opaque price discovery, low liquidity, as well as technological and regulatory issues. According to the bank, “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 of Russia’s recent step demonstrates the institution’s reluctance to embrace the cryptocurrency industry, which is reminiscent of prior restrictions in nations such as China, according to the Financial Times. Since the beginning of this year, the Russian central bank has prohibited big local banks such as Tinkoff from offering cryptocurrency trading services.