Bank of Russia to ban mutual funds from investing in Bitcoin

Bank of Russia to ban mutual funds from investing in Bitcoin

Russian central bank maintains its strict policies in regards to cryptocurrency industry. Officially banning mutual funds (BTC) from investing in cryptocurrencies such as Bitcoin (BTC),

The Bank of Russia issued a statement on Dec. 13 regarding the regulation of mutual investment funds and investment opportunities.

The document does not allow mutual funds to invest in more assets, but it prohibits them from purchasing cryptocurrencies and “financial instruments” whose value is dependent on the price of digital assets.

This statement emphasizes the fact that mutual funds cannot provide crypto exposure to both qualified and unqualified investors.

In July 2021, the Bank of Russia recommended that asset managers exclude cryptocurrency exposure from mutual funds. RBC reported that there has been no crypto exposure in Russian mutual funds despite the fact that there has been no ban.

Artem Deev is the head of AMarkets’ analytics department. He claimed that Russia only has one industry-related exchange traded fund (ETF). According to Deev, the fund is managed by the joint-stock management company “BrokerCreditService” and invests in companies focused on decentralized data storage and blockchain, including firms like Jack Dorsey’s Block, PayPal and Broadcom.

According to Vasily Illarionov, head of asset management at Sber, Russia’s largest bank Sber plans to launch a blockchain-focused ETF. The ETF, called “Blockchain Economy”, will invest in stocks that are related to blockchain adoption. Illarionov stated that the fund is not restricted by the Bank of Russia and that it can be offered to retail investors.

Related: Russia’s biggest bank has trouble registering its digital asset platform

As reported previously, the Bank of Russia has taken a strong stance against cryptocurrency and barred large banks from offering investment services in crypto. According to the regulator, such services are not in the best interests of investors and pose great risk.

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