Russian central bank asks exchanges to avoid cryptocurrency firms
The Bank of Russia has issued a notice asking stock exchanges in the country to avoid listings of foreign and local companies involved in cryptocurrency.
A reliance on cryptocurrency should disqualify a company from listing on exchanges, argues the central bank. This includes digital financial assets outside of Russia, crypto indexes, and derivatives.
Its reasoning behind the warning focuses on the inherent volatility of digital assets, but it also mentions technology and regulation-related risks.
The notice does not apply to central bank digital currencies (CBDCs) or any authorised digital assets issued in Russia.
“Purchases of financial instruments linked to such assets entail increased risks of losses for people who do not have sufficient experience and knowledge,” it writes.
The notice from Russia’s central bank follows a crackdown in China, where a May national ban on cryptocurrency services sent Bitcoin prices tumbling.
China has mandated that firms must not offer clients any service or product involving cryptocurrency, such as registration, trading, clearing, and settlement.
They also can’t provide saving, trust, or pledging services of cryptocurrency. The nation’s regulators also warned investors against speculative cryptocurrency trading.