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The Central Bank of Russia is taking steps to prevent mutual investment funds from putting money into cryptocurrencies such as bitcoin. The restrictions would also apply to derivatives, the value of which depends on the fluctuation in their rates or the prices of securities tied to cryptocurrencies. The monetary authority explained the move with the need to protect investors’ funds and rights. The measure includes not only non-qualified but also accredited investors.
The Bank of Russia has put forward the new provisions.
Bank of Russia has recently published the changes for discussion regarding the policy. The window for receiving feedback and proposals on the draft document will be open until Dec. 27. The regulator has put forward the new provisions after warning asset managers that they should not include crypto assets in their mutual funds earlier this year. In July, the central bank had advised Russian stock exchanges to avoid listing instruments based on cryptocurrencies. It recommended that brokers and trustees refrain from offering “pseudo-derivatives with such underlying assets to unqualified investors.”
A survey revealed that many consider crypto as a hedge investment for the future.
Poll results released this month indicate that alternative assets such as cryptocurrencies form more than half of the portfolios of non-qualified investors in Russia. At the time, 46% of the 1,000 respondents in the survey admitted they considered digital currencies as a hedge investment for the future. Earlier, media reports quoting the head of the important Financial Market Committee, Anatoly Aksakov, revealed that lawmakers at the State Duma, the lower house of the Russian parliament, plan to contemplate restrictions for private investors regarding crypto purchases.
