The Russian news agency, RBU, has recently reported that the Bank of Russia, as well as the Prosecutor General’s Office, are currently collaborating on a block that will ban access to all cryptocurrency trading platforms across Russia.
According to Shvetsov, the several financial institutions are working with the attorney general to block all foreign sites which mediate cryptocurrency trading.
During a financial derivatives event hosted in Moscow, Shvetsov stated that trading in cryptocurrencies and participating in initial coin offerings (ICOs) constitute an unreasonably high risk for both Russian citizens and Russian companies alike. Due to the projected risks, Russia has opted to restrict direct and easy access to these investments.
Shvetsov continued to denounce bitcoin and other cryptocurrencies as a pyramid scheme. Shvetsov stated that bitcoin is becoming an asset which investors buy, hoping for a quick return. Based on these considerations, Russian authorities view bitcoin as a pyramid scheme.
Shvetsov continued in to denounce all cryptocurrencies currently available on the market. He confirmed that Russian authorities viewed cryptocurrencies as a negative influence in the market. According to Shvetsov, Russian authorities will extend every effort towards limiting cryptocurrency participation for the Russian people.
The damning statement followed shortly after another RBC report which stated that the Russian Association of Cryptocurrency and Blockchain had started to collect proposals to draft a set of laws and guidelines to legalize ICOs. According to the report, Arkheniy Shcheltsin, the executive director of the Russian Academy of Military Sciences, stated that these laws would not pertain to cryptocurrencies themselves, as the Russian authorities viewed cryptocurrencies as a separate matter entirely.
The latest denouncing of cryptocurrency marks another event in Russia’s troubled history with cryptocurrencies and ICOs. The country has frequently changed its legal position on the digital currencies since their inception, switching either from trying to prohibit it entirely, to encouraging cryptocurrency activity.
During 2014, the Bank of Russia issued a warning to cryptocurrency users that participating in cryptocurrencies and ICOs constituted a violation of Article 27 of the law “On the Central Bank of the Russian Federation.” This law strictly prohibits the usage of all monetary surrogates within the Russian Federation.
However, in the past months, Russia demonstrated a more tolerant position on cryptocurrency, despite employing a set of rigid regulations regarding the use of cryptocurrency.
However recent events have once again provoked concerns regarding the future of regulatory policies regarding cryptocurrencies in the Russian Federation. At the end of last month, all Russian regulatory authorities failed to conclude the future of digital currencies and ICOs. This failure to agree led to the development of vital cryptocurrency legislation to be postponed until next year.