The Central Bank of Russia censored hedge funds based on bitcoin and other cryptocurrencies on Monday, December 13. This initiative adds to the set of restrictions that the country has on the industry.
The notice issued by the Bank of Russia says: “A ban is established on the investment of funds, the cost of which depends on the rates of cryptocurrencies.” It also points out that the restriction applies to both professional and unqualified investors.
The entity believes that the objective of the censorship is to strengthen the protection of investors’ rights. He also mentions “previously the Bank of Russia recommended not to invest in such assets.” The announcement ends by saying that they will accept proposals and comments on the draft instructions until December 27.
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 almost 8 billion people in the world, according to live data revealed by Worldometers.
While in Russia bitcoin funds are censored, in America there are more and more
At the moment, Russia allows trading bitcoin and other cryptocurrencies. However, the Central Bank and the country’s Parliament have communicated the intention to prohibit trading platforms, allow the confiscation of money in assets and collect taxes on mining.
On the other side of the ocean, the picture is completely different. While in Russia cryptocurrency investment funds are prohibited, in 2021 the first bitcoin funds listed on the stock exchange were allowed on the American continent (ETF for its acronym in English).
Of the three countries that have bitcoin ETFs in the region, Canada leads in number with 14 cryptocurrency exchange-traded funds so far. Then, it is followed by the United States with 3 and Brazil with 1, being the only one in Latin America to have one so far. When it comes to unlisted funds, there are many more.
It is worth clarifying that, Russia is not against cryptocurrency technology, but against the impossibility of having access to its control. Digital currencies, such as bitcoin, are not issued by the State, which makes it difficult for the government to control the population’s money movements. As reported by CriptoNoticias, the Central Bank of Russia communicated this year that it is planning to launch a CBDC, that is, its own cryptocurrency.