As initially disclosed, the Bank of Russia has adopted a tough position on cryptocurrencies. Prohibiting several major banks from providing cryptocurrency investing services. Such services, according to the authority, do not “meet the interests of investors and bear considerable risks.”
The Russian central bank has maintained its tight stance on the cryptocurrency business. With mutual funds now explicitly prohibited from dealing in cryptocurrencies such as Bitcoin (BTC).
Mutual funds are not eligible to provide crypto exposure to certified or disqualified investors
The Bank of Russia released an official notice on Monday, limiting mutual investment funds. In order to regulate investment prospects. Stating that they will no longer be eligible to give crypto access to eligible or ineligible users.
Regardless of the fact that the legislation expands the amount of assets allowed for mutual funds to participate in, it prevents investment managers from purchasing cryptocurrencies and “financial instruments whose value is based on the prices of digital assets.”
In July 2021, the Bank of Russia suggested that asset managers prohibit cryptocurrency from mutual fund exposure. Despite the lack of a legal ban, there were no Russian mutual funds with crypto exposure, according to a report by local news agency RBC.
Russia’s largest bank is planning to launch a blockchain-focused exchange-traded fund (ETF)
According to reports, Russia now has only one industry-related exchange-traded fund (ETF), according to Artem Deev, head of the analytics department at brokerage house AMarkets.
Deev said that the fund is under the administration of “BrokerCreditService”, a joint-stock management organization that engages with companies focusing on decentralized data storage and blockchain, such as Jack Dorsey’s Block, PayPal, and Broadcom.
According to Sber’s asset management chief Vasily Illarionov, Russia’s largest bank is aiming to introduce a blockchain-focused ETF. The ETF will be dubbed “Blockchain Economy” and it will invest in blockchain-related stocks. The fund, according to Illarionov, is not subject to Bank of Russia limitations. And can be valid for sale to ordinary buyers.