Russian Authorities Block Access to Cryptocurrency Exchanges as pyramid (scheme) grows

Russia's central bank is leading efforts to shut Access to the internet to cryptocurrency exchange websites.

As local news outlet RBC reports Tuesday, Bank of Russia is dealing with the country's general prosecutor to block all exchanges offering Russians the chance to purchase and sell cryptocurrency.

“It's obvious that after a pyramid (scheme) grows, curiosity about this pyramid hots up with the higher level of return,” first deputy of the central bank, Sergey Shvetsov, said during an international finance forum in Moscow.

Echoing previous comments, Shvetsov added that the pyramid description is a results of “eyeing Bitcoin's price dynamics within the last two years.”

The move is the most sweeping yet from Russian authorities regarding cryptocurrency access for citizens, and echoes the less coordinated bans of numerous industry resources common until last year.

The debate regarding how to deal with cryptocurrency has raged throughout 2017 in Russia, with various high-profile entities giving conflicting views in regards to what the near future will hold with regards to regulation.

This regulation is ostensibly because of go public by the conclusion of the year.
Meanwhile, not merely private investors, but in addition the company sector faces “too much a risk” using cryptocurrency, Shvetsov said.

Financial instruments centered on cryptocurrency are “impossible to guide,” he continued, adding measures would be studied to “restrict” the capability of the Russian domestic market to communicate with them.