Central Bank of Russia does not support launch of cryptocurrency-related instruments until they exit ‘gray zone’
MOSCOW. March 13 (Interfax) – The Central Bank of Russia does not support the implementation of operations or the issuance of cryptocurrency-related instruments until the relevant legislation appears, Central Bank First Deputy Governor Vladimir Chistyukhin told reporters at the Russian Financial Market Forum organized by the ACRA rating agency.
“We believe that the implementation today of any operations, transactions and the issuance of cryptocurrency-related instruments actually concerns the ‘gray zone’, an unregulated zone,” Chistyukhin said on the sidelines of the forum regarding the Central Bank’s decision to cancel two issues of structured bonds tied to the value of bitcoin and intended for qualified investors.
“We believe that we must first determine the interpretation of the legislation and only then issue these instruments in order for all professional participants in the financial market not to expose themselves, and their clients through themselves, to the risks that certain operations or transactions may be recognized as illegal and illegitimate,” he said.
The Central Bank on Wednesday said that it had sent proposals to the government on regulating investments in cryptocurrencies. The Central Bank particularly proposes allowing qualified investors to invest in settlement derivative financial instruments, securities and digital financial assets that do not provide for the delivery of cryptocurrency, but with yield tied to its value.
“In terms of executing transactions related to various financial instruments that are based on, mention cryptocurrencies, but do not involve the delivery of these cryptocurrencies, we have considered it possible for the transactions to be executed by Russian professional entities with ordinary qualified investors,” Chistyukhin told reporters on the forum sidelines.
“We believe that effecting transactions and investing in cryptocurrencies is an extremely risky activity, and an unqualified investor should be protected from this activity as much as possible,” he said.
Following the Central Bank’s statement, the Moscow Exchange and the SPB Exchange on Wednesday announced plans to launch trading in instruments whose profitability will be tied to the value of cryptocurrencies once the regulations have been implemented.