Even though the Bank of Russia expanded the items and assets allowed, the measure closes the door for investment funds to consider Bitcoin and popularly known cryptocurrencies within their portfolio.
The Bank of Russia, the country’s first monetary authority, revealed that investment mutual funds that operate locally got prohibited from investing in cryptocurrencies like Bitcoin.
The announcement came from the same institution in an official statement. It announced the measure that prohibits investment funds from considering cryptocurrencies within their portfolio of offers, closing the way to financial institutions despite that it has been progressively increasing the number of products and areas in which the administrators of these programs can enter.
Previously, the Bank of Russia Recommended not to Invest in Such Assets.
A ban gets established on the investment of mutual fund funds, including those intended exclusively for qualified investors in digital currencies and financial instruments, the cost of which depends on the rates of digital currencies. The entity ensures that the measure complies with the criteria implemented to protect entities and investors interested in this type of product.
Although the measure shows parallelism with the Russian Authorities’ position, various critics and analysts considered this situation as another door that gets closed against cryptocurrencies within the country.
The authorities of Russia have declared themselves to be against Bitcoin and the other digital currencies precisely because they consider them as a tax evasion procedure used by those who wish to circumvent current regulations. In this regard, the head of Russia’s tax department, Daniil Egorov, clarified that these assets well serve these purposes, which could erode the tax profits that the state capitalizes.
Local authorities considered taking an official position towards exchanges and companies that work with cryptocurrencies within the country, so it is unknown if these activities will get officially prohibited or regulate them to ensure that they comply with specific regulations.
Putin and Bitcoin
Russian President Vladimir Putin has recognized the value of bitcoin and spoke about the role of this currency in the matching of financial operations (use of an asset between parties that use different currencies) in an interview with CNBC. The Russian president questioned the future position of the dollar as a universal store of value and in the matching of international operations in the same interview.
The Russian president has legitimized the value of Bitcoin. Putin leaves the door open for cryptocurrencies to store value. He said he sees how the market fluctuates, so it seems too early for this asset. The leader explicitly recognized Bitcoin and its value. He said there is value in bitcoin but not enough to commercialize oil and other raw materials, which is the bulk of Russian exports.
By: Jenson Nuñez
