Stock exchanges in Russia should not list investment products related to cryptocurrency prices, the country’s central bank, which regulates the industry, said in an announcement on Thursday.

According to a notice and explanatory letter published by the Bank of Russia, stock exchange operators should avoid listing any securities, such as ETFs, that provide payments based on the prices of cryptocurrencies, digital assets issued abroad, cryptocurrency price indexes, crypto derivatives, and securities issued by cryptocurrency-related funds.

Asset managers should also exclude such securities from mutual-fund portfolios, and brokers should not offer such securities to non-qualified investors.

The bank’s Securities Market and Commodity Market Department is the regulator for Russia’s equity markets. The ruling is designed to prevent retail investors getting access to products they may not understand.

“Cryptocurrencies and digital assets are characterized by high volatility, low transparency of pricing mechanisms, low liquidity, technological, regulatory and other specific risks,” the bank wrote. “Purchase of investment products tied to them exposes people who lack experience and professional knowledge to a high risk of losing money.”

The ban does not include central bank digital currencies that might be issued, nor digital assets issued in accordance to the Russian law and registered with the Bank of Russia, the regulator added.

Russia passed a law regulating digital assets in June 2020. Earlier this year, more regulations were added prohibiting Russian public officials from owning crypto and obliging election candidates to report their crypto holdings. Meantime, bitcoin (BTC, +0.98%) has been actively used for fundraising by Russia’s civil and political activists and independent journalists.

All writers’ opinions are their own and do not constitute financial advice in any way whatsoever. Nothing published by CoinDesk constitutes an investment recommendation, nor should any data or Content published by CoinDesk be relied upon for any investment activities. CoinDesk strongly recommends that you perform your own independent research and/or speak with a qualified investment professional before making any financial decisions.

Cryptos feed

Latest Crypto News

Latest Crypto News & Analysis

Editors’ Picks

Bitcoin bulls ignore China warning amid a potential rally to $45,000

Bitcoin has kicked off the August month on the right footing, looking to extend the previous week’s 15% gains amid favorable fundamental and technical catalysts. Looking at the daily chart, the BTC price is gathering pace to initiate a fresh upswing towards the horizontal 200-Daily Moving Average (DMA) at $44,750.

More Bitcoin News

Dogecoin price preps up for a rally towards $0.30

Dogecoin price is jumping this Sunday, displaying a solid start to August, as a fresh buying wave grips the crypto market. DOGE price confirms a triangle breakout on the 4H chart. The bulls target $0.30 amid the renewed upside momentum.

More Dogecoin News

Shiba Inu Price Prediction: Tide turning in favor of SHIB bulls, as $0.00000750 beckons

Amid an upbeat momentum seen across the crypto board, Shiba Inu is looking to extend Saturday’s upswing from near the $0.00000590 support area. The focus remains on Sunday’s close to confirming a falling wedge breakout on the 1D chart.

More Shiba Inu News

XRP price eyes a sustained break above 200-DMA to recapture $1.00

XRP price pauses its recent uptrend, consolidating in a familiar range for the fourth day in a row, as the digital asset bides time to resume the next leg higher. Only a daily closing above the 200-DMA could open gates for a rally towards $1.00. 

More Ripple News


Bitcoin Weekly Forecast: Markets revert to mean, but BTC price remains indecisive

Bitcoin price shows considerable strength after springing from the recent crashes. Still, it is uncertain whether the current bullish impulse will morph into a new uptrend or lead to a more profound decline.

Read the weekly forecast