Bank of Russia Recommends Stock Exchanges to Not List Firms Related to Crypto
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Bank of Russia Recommends Stock Exchanges to Not List Firms Related to Crypto

July 22, 2021      Sahaj Sharma

The newly revealed stock exchanges recommendations by the Bank of Russia says that the bank has asked the stock exchanges not to list companies that have businesses related to crypto. However, it has already been clarified that the latest recommendations do not apply to the CBDCs and digital assets that are issued in the country.

Bank of Russia Asks Stock Exchanges to Avoid Listing Crypto Companies

As international crypto companies are rapidly going public, the Russian stock exchange has been advised by the Bank of Russia to stay away from issuing these kinds of listings. 

The firms that are advised not to be listed consist of companies that have businesses related to the trading or indexing of cryptocurrencies, assets that are issued outside Russia, and crypto derivatives, etc. 

In addition to this, the exchanges have been advised to not include the investment made in these assets in the mutual funds. 

In an official note released on Thursday, the bank said:

“The Bank of Russia’s recommendations aim at a preventive measure — they are designed to prevent a mass investor adoption of such instruments.”

Market Fluctuations Root Cause of the Recommendation

The Bank of Russia laid an emphasis on the fluctuations that are associated with crypto and the fact that they are less liquid, along with the risks involved in their technology and regulations.

Detailing further, the bank added:

“Purchases of financial instruments linked to such assets entail increased risks of losses for people who do not have sufficient experience and knowledge.” 

This recent move by the Bank of Russia indicates yet another backlash faced by the crypto industry in its acceptance by worldwide institutions. 

Also, it has been revealed earlier that the Bank of Russia has been holding back major local banks in the country from offering facilities such as crypto trading to its customers.

One such example is Tinkoff bank, which has been seeking permission from the regulators to offer crypto services to its customers.

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#Bank of Russia #Crypto #Stock Exchanges
Sahaj Sharma
Sahaj Sharma

Sahaj is an aspiring journalist with a keen interest in cryptocurrency and the whole concept of Blockchain technology. He is positive about the future potential of Cryptocurrency and Blockchain in shaping the world of finance for good. At present, he is covering the latest developments in the field of the cryptosphere.