The Central Bank of Russia (CBR) Chairperson, Elvira Nabiullina recently confirmed in a press conference that the country has no plans to follow the U.S. Securities and Exchange Commission (SEC) authorization of Bitcoin ETFs listing.
Bank of Russia anti-crypto stance
The governor’s statement has followed the Bank of Russia’s long-term anti-crypto stance. Earlier this year, CBR published a statement, recommending the Russian stock exchanges to not permit the trading of domestic or foreign securities along with the dividend payments that “depend on cryptocurrency rates”, in lieu of preventing the risks of volatility, opaque financial activities, low liquidity, and more. The bank emphasized the risk factor, noting that with high gaining potential, the risk of losing large sums of money also becomes common for retailers with a lack of experience in the industry.
The bank listed the prices of foreign digital financial assets, changes in cryptocurrency and crypto-asset indices as well as the cost of crypto derivatives and securities of cryptocurrency funds as unwanted financial products.
“Cryptocurrencies and digital assets are characterised by high volatility, non-transparent pricing, low liquidity, technological, regulatory and other specific risks. Purchasing financial instruments linked to them entails increased risks of losses for people who lack sufficient experience and knowledge. The recommendations of the Bank of Russia are a preventive measure — they are aimed at preventing offering such instruments to common investors.”, stated the bank.
US Bitcoin ETF
The long-awaited US first Bitcoin ETF has already been launched and is outperforming itself. Following the first-ever Bitcoin ETF success trail, the second ETF backed by Bitcoin has also launched and experts believe that the regulated Bitcoin ETF mass adoption could be a game-changer for the decentralized industry in the US.
While the US regulators also stood strong against cryptocurrencies like Russia, but the U.S. SEC’s approval of a Bitcoin (BTC) Exchange-Traded Fund (ETF) came as a compromise between the decentralized, and traditional fiat community. The OG crypto, Bitcoin also became the first to experience regulatory support that further pushed its price during the bullish fourth quarter. BTC ETF has proved it correct that regulatory approval radically helps the growth of cryptocurrencies.