Bank of Russia is considering banning mutual funds from investing in BTC

The Bank of Russia is considering banning mutual funds from investing in Bitcoin and will also not allow exposure to qualified or unauthorized investors, as we can see on the Bitcoin news today.

The Russian central bank continues its policy regarding the crypto industry and has now banned mutual funds from investing in cryptocurrencies like BTC.

The Central Bank of Russia is considering banning these mutual funds from investing in BTC and has issued a press release as well as regulating mutual fund investment opportunities. Despite the ever increasing number of assets available for investment, the document prohibits fund managers from buying cryptocurrencies, as well as financial instruments, the value of which depends on the price of the digital asset.

The declaration points out that mutual funds are not allowed to grant exposure to cryptocurrencies to either qualified or unauthorized investors. The Central Bank of Russia recommends asset managers exclude cryptocurrencies from exposure to mutual funds, and as reported by local authorities, no Russian mutual funds have exposure to money electronics, although there has been no official ban so far. Artem Deev, head of analytics at brokerage firm AMarktes, says Russia has an industry-specific exchange-traded fund, and according to Deev, the fund is managed by investment-focused stock management firm BrokerCreditServices, such as companies Jack Dorsey’s block, Broadcom and PayPal.

Russia’s largest bank, Sber, is planning to launch a blockchain-focused ETF, noted Vasily Illarionov, head of asset management. The ETF will be called the Blockchain Economy and will invest in stocks related to blockchain technology in the hopes of driving adoption. Illarionov noted that the funds are not subject to the Central Bank of Russia restrictions that can be made available to retail investors. The Russian central bank has taken a tough stance on cryptocurrencies, banning several large banks from providing crypto services on the grounds that these services do not serve the interests of public investors and can handle large risks.

In an interview with Russian media, the chairman of the committee, Alexander Bastrykin, stated that the decentralized nature of the issuance of digital currencies does not allow the state to fully control the region. Bastrykin claims that law enforcement agencies can, in some cases, use existing laws to confiscate and freeze coins with bank accounts, securities and funds as much as possible. Decentralization is a problem for agents and employees trying to do so, as government control forces them to seek help from crypto companies in special legal circumstances to move funds to wallets while a lawsuit is ongoing.