Bank of Russia asks stock exchanges not to list crypto-related companies

As global cryptocurrency companies increasingly consider listings, the Central Bank of Russia has formally advised local exchanges to avoid crypto-related listings.

Bank of Russia release An information letter on July 19 requested the Russian Stock Exchange to stay away from the listing of foreign and local companies involved in a wide range of crypto services.

The central bank stated in detail that local exchanges should not list shares issued by companies whose businesses rely on crypto market prices, including digital financial assets issued outside Russia, crypto tracking indexes, and crypto derivatives and crypto funds. The Bank of Russia also recommended that asset management companies exclude these instruments from mutual funds.

The bank emphasized that stock exchanges should especially avoid providing unapproved investors with exposure to these investment services.

“The recommendations of the Bank of Russia are intended to take precautionary measures-they are designed to prevent large-scale investors from adopting such tools,” the bank statement In the official notice on Thursday. The statement stated that these recommendations do not apply to central bank digital currencies and authorized digital assets issued by Russia.

related: The Central Bank of Russia studies the risks of crypto investment

The central bank continued to state that cryptocurrencies and digital assets are associated with high volatility, opaque price discovery, low liquidity, and risks related to technology and regulation. The bank added: “Purchasing financial instruments related to such assets will bring greater risk of loss to people who do not have sufficient experience and knowledge.”

The latest move by the Bank of Russia further demonstrates the institution’s reluctance to accept the cryptocurrency industry, echoing this Similar restrictions in China and other countriesAs previously reported, the Central Bank of Russia has been blocking major local banks like Tinkoff Provide cryptocurrency transactions.