The Russian central bank continues its strict policies regarding the cryptocurrency industry, and now officially prohibits mutual funds from investing in cryptocurrencies such as Bitcoin (BTC).
On December 13, the Bank of Russia published an official statement on the regulation of investment opportunities for mutual investment funds.
Despite expanding the number of assets available for investment by mutual funds, the document prohibits fund managers from buying cryptocurrencies, as well as "financial instruments whose value depends on the prices of digital assets."
The statement emphasizes that mutual funds cannot provide crypto exposure to both qualified and unqualified investors.
The Bank of Russia previously recommended to asset managers that exclude cryptocurrencies from exposure in mutual funds in July 2021. According to a report Per local news agency RBC, there have been no Russian mutual funds with crypto exposure even though there has been no formal ban so far.
Artem Deev, head of the analytics department at brokerage AMarkets, said Russia has so far only one industry-related exchange-traded fund (ETF). According to Deev, the fund is managed by the share management company "BrokerCreditService" and invests in companies focused on decentralized data storage and blockchain, including companies such as Jack Dorsey Block, PayPal and Broadcom.
Russia's largest bank Sber is also reportedly planning to launch a blockchain-focused ETF, Sber's director of asset management Vasily Illarionov said. The ETF will be called "Blockchain Economy" and will invest in stocks related to blockchain adoption. Illarionov noted that the fund is not subject to Bank of Russia restrictions and can be offered to retail investors.
Related: Russia's largest bank struggles to register its digital asset platform
As previously reported, the Bank of Russia has taken a tough stance on cryptocurrencies and has prevented some big banks from offering crypto investment services. The regulator argued that such services do not "satisfy the interests of investors and carry great risks".
Post navigation
