Russia Prohibits Mutual Funds From Investing In Digital Currencies

Regulators in Russia have been struggling hard to expedite the supervision over the sector of cryptocurrency. In the latest order, a ban has been placed by the Bank of Russia over the combined funds from making digital currency investments.

A Translated paper mentioned that a prohibition is launched over the mutual funds such as those specified especially for capable investors, in financial and digital currency investments, the price of which relies on the digital currencies’ rates. In simple words, this fundamentally blocks the funds from being exposed to the crypto that was just a suggestion formerly.

It is the fact that a native report referred to an expert who disclosed that at this time none of the mutual funds across Russia are present that are specified for investing in cryptos. In this way, the investors will not be severely affected by the respective decision. According to Artem Deev, the analytical department’s head at AMarkets, the opposition has been posed by the central bank against such investments, through the imposition of regulations that limit such investments to a possible extent.

Sberbank’s Executive Director for the Investments and Savings Division – Vasily Illarionov – stated that in their series of mutual funds as well as that of their competitors there are no digital assets. A notification over the data of July brought out the declaration of the regulator that the country organized the trades of cryptocurrency including more than $5B (nearly 350B rubles) throughout the previous year. This signifies that the residents of Russia are dynamic in the trading of cryptocurrency.

Russia additionally contains approximately up to 11% out of the cumulative monthly hash rate of mining across the globe. Indeed, the country’s power outlets are as well reported to be involved in elevating the rates of electricity for the miners of cryptocurrency. A thing of extreme importance here is that a short time ago, the administration of Vladimir Putin also introduced a draft policy related to the exchanges of crypto as well as the organizers of the systems of information in which the issuance of the digital assets is carried out.

In the meantime, a pilot project is also being launched by the Bank of Russia to test a CBDC (Central Bank Digital Currency) which would be backed by the digital ruble thereof. Reuters mentioned that the country can run the venue’s prototype till the coming year.

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