The Bank of Russia will prohibit mutual funds from investing in cryptocurrencies and their derivatives

From the first quarter of 2022, the Central Bank plans to prohibit mutual investment funds from investing in products whose cost depends on the exchange rate of digital assets.

In accordance with the new draft instructions of the BankIn Russia, mutual funds will not be able to invest in any cryptocurrencies and financial derivatives based on them. The document emphasizes that the ban applies even to qualified participants and foreign digital rights. The regulator argues this with the need to protect the rights of investors.

Although previously giventhe restriction was only advisory in nature, and de jure the funds had such an opportunity, at the moment there are no mutual funds in the Russian Federation that invest in crypto assets.

In July, the Central Bank also appealed to all securities market participants with a request not to trade derivatives, the value of which is directly or indirectly affected by cryptocurrency rates.

According to recent estimates by the Central Bank itself, Russians are among the most active users of crypto-exchanges and annually carry out transactions with digital currencies worth $ 5 billion.

In parallel with the crowding out of private cryptocurrencies andfinancial instruments based on them, the Bank of Russia is working on a digital ruble project. A prototype of the system should be developed by the end of this year, with the first tests scheduled for 2022. If the tests are successful, it could be launched in 2023.

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