In line with its hardline stance on cryptocurrencies, the
Central Bank of Russia (CBR) has issued a recommendation against the
listing of securities tied to crypto assets on the country’s stock
exchanges. The “preventive measure” will not affect state-issued digital
currencies.
Bank of Russia Worried About Common Investors’ Exposure to Crypto Derivatives
Russia’s central banking institution, known as Bank of Russia, has
again expressed its misgivings regarding decentralized money.
Cryptocurrencies and digital assets are characterized by high
volatility, lack of pricing transparency, low liquidity, technological,
regulatory and other specific risks, the financial authority said this week, emphasizing:
The purchase of financial instruments linked to them
entails increased risks of losses for people who do not have sufficient
experience and knowledge.
The new warning came as part of a recently issued recommendation
for Russian exchanges not to allow the trading of domestic or foreign
securities, the dividend payments of which “depend on cryptocurrency
rates.” Among the unwanted financial products, the bank further listed
those tied to “prices of foreign digital financial assets, changes in
cryptocurrency and crypto asset indices as well as the cost of crypto
derivatives and securities of cryptocurrency funds.”
The regulator’s notice also refers to financial instruments connected
to the prices of tokens, defined under the current Russian legislation
as ‘digital rights,’
which are offered or accepted as a non-currency means of payment. These
do not represent a Russian or foreign legal tender, or an international
monetary unit and unit of account, the central bank stressed.
According to the advisory letter sent out by the Bank of Russia,
asset managers should not include cryptocurrency assets in mutual funds.
The CBR advised brokers and trustees to refrain from offering
“pseudo-derivatives with such underlying assets to unqualified
investors.”
These recommendations are meant as a “preventive measure,” the
Russian central bank noted in the announcement. “They are aimed at
preventing the offering of such instruments to the mass investor,” the
regulator emphasized.
Bank of Russia remarked the restrictions do not apply to national digital currencies issued by governments, or CBDCs.
They won’t affect digital financial assets issued in accordance with
Russian law and by information systems whose operators are registered
with the Russian central bank, the institution added.
source link : https://news.bitcoin.com/bank-of-russia-advises-stock-exchanges-to-avoid-trading-crypto-instruments/
