July 25, 2021

Markets news | The Central Bank advised Russian exchanges not to work with instruments linked to cryptoassets

From the message of the Central Bank of the Russian Federation.

The Bank of Russia recommends that Russian stock exchanges not allow securities to be traded Russian and foreign issuers, payments onwhich depend on cryptocurrency rates, prices of foreign digital financial assets, changes in cryptocurrency and cryptoasset indices, as well as the cost of crypto derivatives and securities of cryptocurrency funds

Managers should not include theseassets in mutual funds, and brokers and trustees are advised to refrain from offering pseudo-derivatives with such underlying assets to unqualified investors.

Cryptocurrencies and digital assets are characterized byhigh volatility, lack of transparency in pricing, low liquidity, technological, regulatory and other specific risks. Buying financial instruments linked to them entails increased risks of losses for people who do not have sufficient experience and knowledge.

These recommendations are preventive measure - they are aimed at preventing the offer of such instruments to the mass investor.

Restrictions do not apply to digitalnational currencies if they are released into circulation. They also do not apply to digital financial assets issued under Russian law in information systems whose operators are included in the register of the Bank of Russia.

The Central Bank recommended that Russian exchanges not work with instruments linked to cryptoassets - Economy and business - TASS (tass.ru)