The Russian central bank censored hedge funds based on Bitcoin and other cryptocurrencies on Monday, December 13th. This initiative complements the number of restrictions the country has on the industry.
The notice the Bank of Russia says: “There will be a ban on the investment of funds, the cost of which depends on the exchange rates of the cryptocurrencies.” He also advises that the restriction applies to both professional and unskilled investors.
The company believes the goal of censorship is to strengthen the protection of investor rights. He also mentions that “the Bank of Russia previously recommended not to invest in such assets”. The announcement ends with the assumption that they will accept proposals and comments on the draft instructions by December 27th.
Russia has more than 144 million inhabitants, which means that this restriction will affect almost 2% of the world’s population. It is estimated that there are nearly 8 billion people worldwide, according to live data from Worldometers.
While Bitcoin funds are being censored in Russia, America has more and more
Currently, Russia allows Bitcoin and other cryptocurrencies to be traded. However, the country’s central bank and parliament have communicated their intentions to ban trading platforms, allow the seizure of funds in assets, and levy taxes on mining.
Russia reiterates its censoring stance on cryptocurrencies by banning their use in mutual funds. Source: @MyBolivia / twitter.com
On the other side of the ocean the picture looks very different. While cryptocurrency mutual funds are banned in Russia, In 2021, the first listed Bitcoin funds were approved on the American continent (ETF for its English acronym).
Of the three countries that have Bitcoin ETFs in the region, Canada leads the way with 14 exchange-traded cryptocurrency funds to date. Then come the United States with 3 and Brazil with 1, the only ones in Latin America so far. When it comes to unlisted funds, there are many more.
It is worth clarifying Russia is not against cryptocurrency technology, but against the inability to have access to its control. Digital currencies like Bitcoin are not issued by the state, making it difficult for the government to control the movement of money among the population. As CriptoNoticias reports, the Russian central bank announced this year that it is planning to introduce a CBDC, its own cryptocurrency.
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