Bank of Russia is Against Crypto-Related Listings
The Bank of Russia officially asked local stock exchanges to avoid crypto-related listings. The country’s central bank released an information letter this week. In its letter, the central bank is asking Russian stock exchanges to stay away from listings of foreign and local companies involved in a broad range of crypto services.
Russian stock exchanges shouldn’t list stocks issued by companies whose business depends on cryptocurrency market prices. The country’s central bank also recommended asset managers exclude these instruments in mutual funds.
The country’s central bank highlighted that stock exchanges particularly avoid providing exposure to these investment services to non-accredited investors.
The recommendations prepared by the central bank don’t apply to the central bank’s digital currencies. They also don’t apply to authorized digital assets in Russia.
Bank of Russia and Crypto-related risk factors
The central bank also did not forget to mention crypto-related issues. The Bank of Russia mentioned several important problems such as high volatility, low liquidity. The bank also noted opaque price discovery, as well as technology and regulation-related risks.
The central bank’s latest move once more underlines its reluctance to embrace the crypto industry. The Bank of Russia is not alone as another central bank also took measures against crypto-related companies. The People’s Bank of China (PBOC) stated that bitcoin and stablecoins threaten financial security as well as social stability. Fan Yifei served as the Deputy Governor of the PBOC and made a comment about crypto.
He announced that PBOC is already taking measures to deal with challenges. He thinks that stablecoins have become a speculative tool for money laundering. Fan Yifei mentioned in his statement that the country is currently monitoring and studying private digital currencies that are not issued by the central bank.