The Central Bank of Russia Bans Mutual Funds From Investing in Cryptocurrencies

The Central Bank of Russia Bans Mutual Funds From Investing in Cryptocurrencies

Russia has recently re-emphasized its stance in regards to cryptocurrencies, and other, related digital assets. In a statement put out on Monday, the Central Bank of Russia has proclaimed that it would ban mutual fund managers from purchasing cryptocurrencies, or any extensions of cryptos - namely, any financial instruments whose price would depend on digital assets.

In the same statement, the Bank of Russia did expand a list of alternative assets that mutual funds will be capable of investing in. This only further-extends the point that Russia tries to make, crypto-wise.

Up until this point in time, there has been no official ban on mutual funds exposing their clients to cryptocurrencies - only recommendations made from the Bank of Russia to avoid doing so. That being said, there have been no mutual funds within the country that would offer cryptocurrencies as a potential investment tool.

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Currently, the only exchange-traded funds (better known as ETFs) that can be traded in Russia, and that would be related to blockchain technology, are those offered by BrokerCreditService (BCS), and relate to blockchain-based data storage. Reportedly, there is currently another blockchain-related ETF in the works, too - it will be offered by Sber, Russia’s largest bank.

Aaron S. -  Expert Reviewer

by Aaron S. - Expert Reviewer, BitDegree


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