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Bank of Russia Is Imposing a Ban on Mutual Funds From Investing in Bitcoin

The central bank of Russia resumes its harsh policies when it comes to the crypto industry as it now bans mutual funds from investing in cryptos such as Bitcoin.

The Bank of Russia released an official statement yesterday regarding regulating investment opportunities by mutual investment funds.

The document increased the total of assets that can be used for investment by mutual funds, but it also bans fund managers from purchasing cryptos and “financial instruments whose value depends on prices of digital assets.”

It actually goes on to highlight the fact that mutual funds aren’t permitted to offer crypto exposure to either qualified or unqualified investors.

In July of this year, the bank went with the recommendation for asset managers to exclude cryptos from exposure in mutual funds. It has been reported that there were no Russian mutual funds with crypto exposure despite the fact that there wasn’t an official ban imposed until now.

The head of the analytics department at the brokerage firm AMarkets, Artem Deev, stated that the country has only one industry-related ETF that is managed by joint-stock management company BrokerCreditService, although it has invested in companies that deal with the blockchain and decentralized data storage, like Broadcom, Block, and PayPal.

Sber, the largest bank in the country, also wants to release a blockchain-focused ETF, according to Vasily Illarionov, the asset management head. The name of the ETF is scheduled to be “Blockchain Economy” and the plan is for it to be used for investments in stocks related to blockchain adoption.

Source: CoinTelegraph.com

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