Bank of Russia urges exchanges not to list cryptocurrency-related companies

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

The Bank of Russia issued an information letter on Monday. Urging Russian exchanges to stay away from lists of foreign and local companies involved in a wide variety of crypto services.

The central bank stated that the local stock exchanges They should not be added to stocks of companies whose business is based on crypto market prices, including digital financial assets issued outside of Russia, tracking crypto indices, and crypto derivatives and cryptocurrency funds. The Bank of Russia also recommended that asset managers exclude these instruments in mutual funds.

Bank of Russia urges exchanges not to list cryptocurrency-related companies
Bank of Russia urges exchanges not to list cryptocurrency-related companies

The bank stressed that stock exchanges, especially non-accredited investors, should invest in these securities services.

“The recommendations of the Bank of Russia indicate a preventive measure: They should prevent a massive takeover of such instruments by investors”The bank announced this in an official statement on Thursday. The recommendations do not apply to central bank digital currencies (CBDC) and authorized digital assets issued in Russia, the statement said.

The central bank went on to say that cryptocurrencies and digital assets are associated with high volatility and low liquidityand risks related to technology and regulation. “The purchase of financial instruments associated with these assets carries a higher risk of loss for people who do not have sufficient experience and knowledge”added the bank.

The Bank of Russia’s latest move further demonstrates the institution’s reluctance to embrace the cryptocurrency industry. reflect similar restrictions in countries such as China. As previously reported, The Russian central bank has prevented large local banks like Tinkoff from offering a cryptocurrency trading service.

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