At the invitation of International Lawyers Network, Danir Shafigullin, Junior Associate of the Intellectual Property and Information Technologies practice at Maxima Legal, prepared for JD Supra an overview of Russian legislation restricting participation of cryptocurrency holders in organized securities trading.
Within the material the expert stressed that according to the Information letter of the Central Bank of Russia No. IN-06-59/52 of 19.07.2021 “On certain types of financial instruments”, Russian and foreign issuers whose payments on securities depend on digital currency rates, prices for foreign digital rights, prices for digital rights that can be accepted as payment or prices of contracts related to digital rights transfer, will not be allowed to participate in organised securities trading. In addition, professional securities market participants must refrain from offering securities linked to digital rights to unqualified investors (individuals). According to Danir, management companies are also discouraged from including digital rights-linked shares in mutual funds and equity funds and companies whose payments depend on digital rights turnover.
JD Supra is a daily online publication covering corporate and private law in various jurisdictions.
