Central Bank of Russia sets rules for margin trading in cryptocurrency
MOSCOW. July 30 (Interfax) – The Bank Central of Russia has ready a draft regulation that enables brokers to just accept cryptocurrencies and digital rights as collateral for margin positions, and their shoppers to have interaction in brief promoting, topic to sure necessities, and the corresponding regulation is posted on the regulator’s web site.
Each certified and non-qualified traders will be capable of enter into margin transactions. For the latter, cryptocurrency transactions can be restricted to limits established by the Central Bank.
The regulation additionally amends the process for calculating danger protection requirements for margin transactions. Brokers presently calculate them for transactions involving securities, treasured metals, currencies, futures, and choices. Cryptocurrencies and digital rights can be added to the listing.
“The rules display the security margin of an investor’s portfolio. They outline the boundaries inside which a dealer can execute shopper transactions utilizing borrowed funds, in addition to the boundaries past which the shopper’s positions can be forcibly closed. This may assist restrict the quantity of investor losses,” the Central Bank famous.
The regulation is scheduled to take impact 10 days after its official publication. Options and feedback on the draft are accepted till August 12.
The Central Bank earlier this week additionally revealed draft rules defining the rules for cryptocurrency trading and necessities for digital depositories.
