Bank of Russia Bans Mutual Funds from Investing in Crypto
Russia’s central bank has announced new regulations that prohibit mutual funds from investing in digital currency in a national directive on Monday. Such funds are banned from investing in cryptocurrency or in “financial instruments, the value of which depends on digital currencies.”
In July of this year, the Bank of Russia recommended local stock exchanges to exclude cryptocurrency listings claiming in a statement that “purchases of financial instruments linked to such assets entail increased risks of losses for people who do not have sufficient experience and knowledge.”
According to a report made by local Russian news outlet RBC, there have been no current mutual funds with crypto exposure despite the lack of a formal ban until now.
The decision to bar mutual funds from participating in digital currency echoes the growing concern among governments surrounding the decentralised and fluctuating nature of cryptocurrency.
The Bank of Russia is in the process of developing its own Ruble supported CBDC with the central bank’s governor, Elvira Nabiullina, revealing to Reuters the prototype is scheduled for creation in early 2022, and is to be followed by a pilot program that will guide national launch decisions.
