As global crypto companies increasingly consider listing stocks, the Central Bank of Russia has officially recommended that local exchanges avoid stock exchange listings related to crypto.

The Central Bank of Russia issued an information letter on July 19 urging Russian stock exchanges to stay away from listing foreign and local companies involved in a variety of monetary services.

The central bank made it clear that local exchanges should not list stocks issued by companies whose business is based on cryptocurrency market prices, including digital financial assets. Issued outside of Russia, the index tracks cryptocurrency, as well as crypto derivatives and crypto funds. Bank of Russia also recommends that asset managers exclude these instruments from mutual funds.

In particular, the bank stressed that exchanges should avoid providing these securities services to non-accredited investors.

“The recommendations of the Bank of Russia are aimed at a precautionary measure – they are to prevent such instruments from being adopted by investors on a massive scale,” the bank said in an official statement on Thursday. The recommendations do not apply to central bank digital currencies and digital assets approved for issuance in Russia, the statement said.

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The central bank went on to say that cryptocurrencies and digital assets are associated with high volatility, price uncertainty, low liquidity, and risks related to technology and regulation. The bank added, “Purchasing financial instruments related to these assets increases the risk of loss for those who do not have sufficient experience and knowledge.

The latest move by the Russian central bank continues to show its reluctance to enter the crypto industry and reflect similar restrictions in countries like China. As previously reported, the Russian central bank has banned large local banks like Tinkoff from offering cryptocurrency trading.