While the uneasiness and fluctuation in the crypto money markets continue, important decisions continue to come from the countries.
In an official letter released by the Central Bank of Russia today, it was stated that mutual funds in Russia will not be allowed to provide cryptocurrency exposure to qualified and unqualified investors.
In the decision taken to expand the scope of mutual funds and reach more users, cryptocurrencies remained within the scope of the ban. The following statements were used in the statement:
“At the same time, mutual funds, including those for qualified investors only, whose cost depends on the rates of digital currencies. Investment in digital currencies and financial instruments is prohibited. Earlier, the Central Bank of Russia recommended not to invest in such assets.
The initiatives of the Bank of Russia will not only increase the investment potential of mutual funds, but also strengthen the protection of investor rights.
This means that exchange-traded funds linked to cryptocurrencies cannot be bought.
The text, published in July 2021, advised asset managers to stay away from funds investing in cryptocurrencies. With the document published today, we went one step further and blocked the funds.
Russia continues to consider cryptocurrencies to be extremely risky assets and to take action to protect investors at this point.
The Central Bank, which has made harsh statements about cryptocurrencies before, has banned some large banks from offering crypto money services.
*Not Investment Advice.