Russia to Block Access to Cryptocurrency Exchange Websites


The first deputy Governor of Russia’s Central Bank, Sergei Shvetsov, is reported to have stated that Russia will move to institute a nationwide ban on access to cryptocurrency exchange websites.

Also Read: Russia’s Central Bank Instructs Clearinghouse Not to Settle Cryptocurrency Contracts

The Bank of Russia and the Prosecutor General’s Office Are Expected to Block Access to Cryptocurrency Exchange Websites

Russia to Block Access to Cryptocurrency Exchange Websites

The Russian media outlet RBU has reported that the Bank of Russia and the Prosecutor General’s Office are working together to block access to cryptocurrency exchanges across Russia. Shvetsov is reported to have stated that the institutions “are working together with the attorney general to block foreign sites which allow our citizens to purchase instruments of this kind.”

Speaking at a financial derivatives event held in Moscow, Shvetsov stated “we think that for our citizens, for businesses the usage of such cryptocurrencies as an investment object carries unreasonably high risks. We cannot give direct and easy access to such dubious instruments for retail investors.”

Shvetsov described the bitcoin and cryptocurrency markets as comprising a “pyramid scheme”, stating that “bitcoin is turning into an asset which is bought in hopes of fast returns, and therefore it has characteristics of a financial pyramid scheme.”

Shvetsov also spoke damningly of cryptocurrency derivatives markets, stating that the central bank “see[s] all derivatives on crypto as negative phenomena for our market. Not only can’t we support it, we will make every effort to limit for the regulated sector the option to operate with such types of instruments.”

The announcement comes just days after RBC reported that the Russian Association of Cryptocurrency and Blockchain had “began to collect proposals… that should form the basis of [a] draft law legalizing ICOs.” In the report, the executive director of the Russian Academy of Military Sciences, Arkheniy Shcheltsin, indicated that the word cryptocurrency was unlikely to feature in the draft legislation, stating that “cryptocurrency is a separate issue.”


Russia’s Regulatory Position Regarding Cryptocurrencies Has Been Historically Ambiguous

Russia to Block Access to Cryptocurrency Exchange Websites

Russia has had a tumultuous history with regards to its legal position on cryptocurrencies, as the nation has appeared to oscillate between seeking to prohibit and encourage activities in the nascent virtual currency industries. In 2014, Bank of Russia warned that cryptocurrency use may be in violation of Article 27 of the law ‘On the Central Bank of the Russian Federation’ – which prohibits the use of money surrogates throughout Russia.

In recent months, Russia has appeared to be edging towards developing a tightly controlled regulatory apparatus permitting the use of cryptocurrencies for various purposes through the country – including considering including offering state subsidies for major mining operations, and proposals from the Ministry of Finance recommending the introduction of cryptocurrency educational programs as part of the country’s Financial Literacy Strategy.

The events of recent weeks, however, have again aroused concerns pertaining to the regulatory future of cryptocurrencies in Russia. At the end of September, Russian regulators failed to agree on virtual currencies, and postponed the development of cryptocurrency legislation until next year. Earlier this week, Russia’s central bank also instructed the major Russian clearinghouse, MFB Clearing Center, to “refuse to deal with cryptocurrencies”, following MFB’s publication of new rules on its website that included provisions pertaining to the clearing of OTC contracts based on virtual currencies.

Do you think that more nations are likely to initiate crackdowns on cryptocurrency exchanges? Share your thoughts in the comments section below!

Images courtesy of Shutterstock

Do you agree with us that Bitcoin is the best invention since sliced bread? Thought so. That’s why we are building this online universe revolving around anything and everything Bitcoin. We have a store. And a forum. And a casino, a pool and real-time price statistics.

11 Replies to “Russia to Block Access to Cryptocurrency Exchange Websites”

  1. After study a couple of of the blog posts in your web site now, and I truly like your method of blogging. I bookmarked it to my bookmark web site listing and will probably be checking again soon. Pls check out my web site as effectively and let me know what you think.

  2. My friends and I certainly like your site and find almost all of the blogposts to be exactly I am in need of. Do you offer guest writers to create content material for you? I would not mind creating a story on free movie sites or possibly on a few of the things you’re writing about on this site. Cool place!

  3. I was discussing with a good friend of my own regarding this article and about wealth generators review too. I feel you made a number of very good points on this page, we are looking forward to keep reading material from you.

  4. I totally like your website and find a majority of your posts to be precisely what I’m interested in. Do you offer other people to post information for you? I would not mind producing a story relating to more followers on instagram or even on a lot of the things you are writing about on this website. Awesome website!

  5. Hi and thanks for this great post! I quite appreciated reading it.I will make certain to save the blog and will often come back in the future. I want to encourage you to keep going with the nice work, perhaps talk about jailbreak app also, have a fine evening!

  6. It is appropriate time to make some plans for the future and it’s
    time to be happy. I’ve read this post and if I could I
    want to suggest you some interesting things or
    tips. Maybe you can write next articles referring to
    this article. I wish to read more things about it!

  7. Hey there! This is my very first reply on your website so I really wanted to say a quick shout out and tell you I genuinely enjoy reading your posts. Can you recommend other websites which deal with commercial real estate lending? I’m also really fascinated by that! Thank you so much!

  8. Admiring the commitment you put into the site and in depth information you offer. It really is great to find a blogging site every now and then that is not the similar unwanted rehashed content. Wonderful read! I have bookmarked your site and I am including your RSS feeds to my metatrader robot site.

Leave a Reply

Your email address will not be published. Required fields are marked *