Bank of Russia against stock exchanges to list crypto-connected companies

As global cryptocurrency companies increasingly consider going public, Russia’s central bank has officially recommended that local stock exchanges avoid cryptocurrency listings.

On Monday, the Bank of Russia issued an information letter urging Russian stock exchanges to stay away from listings of foreign and domestic companies involved in a wide range of crypto services.

The central bank clarified that local stock exchanges should not list shares issued by companies whose business relies on crypto market prices, including digital financial assets issued outside Russia, cryptocurrency indices, as well as crypto derivatives and crypto funds, also recommended management assets to exclude these instruments from mutual funds.

The Bank stressed that stock exchanges should especially avoid providing these investment services to non-accredited investors.

“The recommendations of the Bank of Russia are aimed at a preventive measure – they are designed to prevent mass acceptance of such instruments by investors,” the bank said in an official statement on Thursday. The recommendations do not apply to the central bank’s digital currencies and authorized digital assets issued in Russia, the statement said.

Cryptocurrencies and digital assets are associated with high volatility, non-transparent price detection, low liquidity, as well as technology and regulatory risks. “Purchases of financial instruments related to such assets lead to an increased risk of loss for people who do not have sufficient experience and knowledge,” the bank added.

BoR’s latest move further demonstrates the institution’s reluctance to adopt the cryptocurrency industry, repeating similar restrictions in countries such as China. As previously reported, Russia’s central bank is deterring large local banks such as Tinkoff from offering cryptocurrency trading.