The Central Bank of Russia has expressed its opposition to the provision of financial services related to cryptocurrencies. Monetary authorities believe that such issuances would be against the interests of Russian investors because they carry a high level of risk.

The Central Bank of Russia is reluctant to provide financial services for crypto assets

The Central Bank of Russia (CBR), known for its tough stance on the legalization of cryptocurrencies, rejected calls from members of the financial sector to authorize the provision of crypto-related services. The regulator announced its position at a meeting with industry representatives to discuss the development prospects of the Russian stock market.

According to the recently announced announcement, Financial companies raised the issue of allowing crypto investment in the Russian Federation. In response to their suggestions, the monetary policy regulator stated:

The Central Bank of Russia stated that the provision of services related to the business of encrypted assets and derivatives by financial institutions is not in the interests of investors in the financial market, and there are greater risks.

The press release further indicated that the Central Bank also rejected the industry’s proposal to expand the issuance of Russian financial instruments in foreign currencies.

The Bank of Russia has always held a conservative view of the Russian ruble’s status as the country’s only legal tender. CBR still exists be opposed to Allow the free circulation of Bitcoin, etc. and its use in payment.

Monetary authorities often refer to cryptocurrencies as “Money agent“This is prohibited by the current Russian law. It is also committed to developing and issuing its own digital ruble, and is expected to start trials as early as January 2022 after the platform prototype is completed at the end of this year.

Although cryptocurrencies are only partially regulated in Russia through the “digital financial assets” law that took effect in early 2021, their popularity as an investment option has increased significantly. CBR’s findings indicate that cryptocurrencies and other alternative assets form More than half of the portfolios of non-qualified Russian investors.

In July, the Bank of Russia Suggest Domestic stock exchanges to avoid trading of financial instruments related to encrypted assets and their prices. The authorities warned that their listing “increased the risk of losses for people without sufficient experience and knowledge.”

The bank also insisted that asset management companies should not include cryptocurrencies in mutual funds, and called on brokers and trustees not to provide unqualified investors with “pseudo derivatives with such underlying assets.”Russian legislators are considering limit Private investors may invest funds in cryptocurrencies.

Do you think the Bank of Russia can change its stance on cryptocurrency investment in the future? Share your expectations in the comments section below.

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