Fun

Bank of Russia Wants to Ban Mutual Funds From Investing in Cryptocurrency

News Feed - 2021-12-15 01:12:39

Bank of Russia Wants to Ban Mutual Funds From Investing in Cryptocurrency


Russia’s central bank intends to prohibit mutual funds from acquiring crypto assets or related financial instruments. The proposal, which is in line with its hard line stance on decentralized digital money, comes after the regulator urged stock exchanges to avoid trading securities tied to cryptocurrencies. Central Bank of Russia Issues Draft Directive Banning Crypto Investments for Mutual Funds


The Central Bank of the Russian Federation (CBR) is taking steps to prevent mutual investment funds from putting money into digital currencies 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 digital assets.


The monetary authority explained the move with the need to protect investors’ funds and rights. The measure concerns not only non-qualified but also accredited investors. It will be introduced through amendments to the CBR directive “On the composition and structure of assets of joint-stock investment funds and assets of mutual investment funds” from 2016.



Bank of Russia has recently published the changes for discussion. 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 earlier this year that they should not include crypto assets in their mutual funds.


In July, the CBR advised Russian stock exchanges to avoid the listing of instruments based on cryptocurrencies and recommended that brokers and trustees should refrain from offering “pseudo-derivatives with such underlying assets to unqualified investors.” Later, the authority stated it would not facilitate access to crypto for such investors and rejected the provision of related financial services.


Poll results released this month indicate, however, that alternative assets such as cryptocurrencies form more than half of the portfolios of non-qualified investors in the country. At the time, 46% of the 1,000 respondents in the survey admitted they considered digital currencies as a hedge investment for the future.


In October, 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. Officials in Moscow have been discussing the idea for some time.


In October 2020, Bank of Russia proposed an annual limit of 600,000 rubles (a little over $8,000) and also sought public opinion on the threshold. Expectations at the time were that the limit would be incorporated into the law “On Digital Financial Assets,” which went into force in January, but that did not happen. Tags in this story Accredited, Bank of Russia, Bitcoin, CBR, Central Bank, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Digital Currencies, directive, draft directive, Funds, Investments, Investors, mutual funds, non-qualified, proposal, Regulation, Regulations, regulator, Russia, russian


Do you think Bank of Russia’s proposal to ban mutual funds from investing in cryptocurrencies will gain enough support? Share your expectations in the comments section below. Lubomir Tassev


Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration. Bank of England Deputy Governor Warns Crypto Prices Could Fall to Zero REGULATION | 6 hours ago Nigerian Government Minister Calls for Regulation of Crypto, Considers Additional Body "to Play That Role" REGULATION | 1 day ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleBank of England Deputy Governor Warns Crypto Prices Could Fall to Zero Next articlePremier P2E NFT Character Drop by Funganomics Announced as Saturday 18th December Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItNovi Launches Whatsapp Integration Pilot Program for Selected Users in the U.S.


Novi, the remittance and payments initiative of Meta (formerly Facebook), has launched a Whatsapp pilot test for customers in the U.S. This means that a small number of Whatsapp users will be able to send and receive payments, as well ... read more.Crowdfunding Platform Kickstarter Will Shift to Blockchain-Based Model Indian Prime Minister Narendra Modi to Take Final Decision on Cryptocurrency Regulation Makersplace Plans to Drop World’s First 2pac NFT Collection Authorized by the Shakur Estate Ethereum Co-Founder Vitalik Buterin Publishes "Plausible Roadmap" Addressing Scalability

News Feed

Kaamel Technology to lead investigation into XLink's $10M breach
Josh O"Sullivan10 hours agoKaamel Technology to lead investigation into XLink"s $10M breachXLink is partnering with Kaamel Technology to investigate the initial cause of the breach while accelerating previously communica
Savannah Fortis13 hours agoDOJ seeks to bar Sam Bankman-Fried’s expert witnesses from testifyingIn a new motion submitted to New York courts, the U.S. Department of Justice wants to exclude all of Sam Bankman-Fried’s
Binance restricts unverified sub-accounts on Exchange Link program
Ezra Reguerra14 hours agoBinance restricts unverified sub-accounts on Exchange Link programSub-accounts without the necessary KYC information will be fully restricted by May 20.1188 Total views12 Total sharesListen to ar
Amaka Nwaokocha12 hours ago‘Premier’ crypto cop CFTC reveals record-setting digital asset enforcement in 2023The statement released by the CFTC shows that about 50% of the cases brought to its attention in 2023 invol
Crypto-like communication devices could break gov’t surveillance — Telegram founder
Arijit Sarkar36 minutes agoCrypto-like communication devices could break gov’t surveillance — Telegram founderPavel Durov, founder of Telegram Messenger, believes that governments’ decreasing tolerance toward priva
Midsize US Banks Ask Regulators to Extend FDIC Insurance to All Deposits for 2 Years Before Another Bank Fails
Midsize US Banks Ask Regulators to Extend FDIC Insurance to All Deposits for 2 Years Before Another Bank Fails The Mid-Size Bank Coalition of America has asked federal regulators t
Crypto critics file updated campaign finance complaint against Coinbase
Brayden Lindrea6 hours agoCrypto critics file updated campaign finance complaint against CoinbaseThe complainants and Coinbase disagree on whether a government contract to custody seized crypto breaches campaign finance
Bitcoin Taxation Support Growing Industry – Here are 5 Useful Cryptocurrency Tax Calculators
Bitcoin Taxation Support Growing Industry – Here are 5 Useful Cryptocurrency Tax Calculators For crypto owners looking to estimate how much they owe in taxes, there are some pl
Gareth Jenkinson1 hour agoCoinEx hack: Compromised private keys led to $70M theftCoinEx confirms that compromised private keys gave hackers access to hot wallets, leading to a $70 million hack.555 Total views9 Total shar
On March 14th, 3PM JST, Cosplay Token Will Be Simultaneously Listed on Zaif and SEBC Japanese Cryptocurrency Exchanges
On March 14th, 3PM JST, Cosplay Token Will Be Simultaneously Listed on Zaif and SEBC Japanese Cryptocurrency Exchanges press release PRESS RELEASE. Cosplay Token “COT”
Coinbase expands asset recovery tool to Polygon and BNB Chain
Zhiyuan Sun3 hours agoCoinbase expands asset recovery tool to Polygon and BNB ChainThe cryptocurrency exchange will charge a 5% commission for retrievals above $100.900 Total views34 Total sharesListen to article 0:00New
Trump’s Libra Slam May Have Kneecapped Facebook Stock
In the age of Trump, all it takes is a single tweet to move the stock market. And the president may have done just that when he launched a tripartite attack on Facebook’s Libra cryptocurrency. Facebook Stock Can&#