The Central Bank banned professional market participants from trading assets linked to cryptocurrencies

22-07-2021

The Central Bank of Russia said that professional market players will no longer be able to sell financial instruments in which cryptocurrencies play the role of the underlying asset to retail investors. This ban also applies to licensed forex dealers. 

Representatives of the Central Bank provided a list of restrictions relating to the trading of financial instruments linked to digital assets. However, the bans listed there do not apply to professional private investors. 

“The Bank of Russia recommends that Russian exchanges should not allow securities of Russian and foreign issuers to be traded, payments on which depend on cryptocurrency rates, prices of foreign digital financial assets, changes in cryptocurrency and cryptoasset indices, as well as the value of crypto derivatives and securities of cryptocurrency funds,” the Central Bank said.

Central Bank executives are of the opinion that cryptocurrencies are volatile, low-liquidity and do not have transparent pricing. Given the risks associated with investing in digital assets, the Central Bank does not recommend professional market participants to offer such instruments to traders. 

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