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Bank of Russia asks exchanges not to list crypto-related companies

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As global cryptocurrency companies increasingly consider going public, Russia’s central bank has officially recommended local exchanges to avoid crypto-related listings.

The Bank of Russia Posted a newsletter on Monday, asking Russian exchanges to stay away from quotes from foreign and local companies involved in a wide range of crypto services.

The central bank clarified that local exchanges should not list stocks issued by companies whose business is based on crypto market prices, including digital financial assets issued outside of Russia, crypto indices. -tracking, as well as crypto derivatives and crypto funds. The Bank of Russia has also recommended that asset managers exclude these instruments from mutual funds.

The bank stressed that exchanges should particularly avoid providing exposure to such investment services to unaccredited investors.

The recommendations of the Bank of Russia are aimed at a preventive measure, they are designed to prevent massive adoption by investors of such instruments, the bank declared in an official notice Thursday. The recommendations do not apply to central bank digital currencies and authorized digital assets issued in Russia, the statement said.

Related: Russia’s central bank to study crypto investment risks

The central bank went on to say that cryptocurrencies and digital assets are associated with high volatility, opaque price discovery, low liquidity, as well as technology and regulatory risks. Purchases of financial instruments tied to such assets lead to increased risk of loss for people who do not have enough experience and knowledge, the bank added.

The Bank of Russia’s latest move further shows the reluctance of institutions to embrace the cryptocurrency industry, echoing similar restrictions in countries like China. As previously reported, the Russian central bank has blocked major local banks such as Tinkoff from offering cryptocurrency exchanges.