The First Deputy Chairman of the Russian Central Bank said that his institution will support efforts to stop access to external websites selling cryptocurrencies in the country.
Sergei Shvetsov cited the "unreasonably high risks" involved in cryptocurrency investment as a reason for the proposed measure, adding: "We cannot give direct and easy access to such dubious instruments for [investors]".
As such, the Russian financial regulator will be working with the General Prosecutor's Office to close websites offering these services – a crackdown that should extend to "all cryptocurrency derivatives".
He said:
"We consider all cryptocurrency derivatives to be a negative development on the Russian market and do not consider it possible to support it, and will even assume measures to restrict potential operations with such instruments made by the regulated part of the Russian market. Meanwhile, we will make efforts aimed at closing external websites that allow Russian citizens to acquire such assets with the General Prosecutor's Office."
This development is the latest episode in a debate over cryptocurrency in Russia, with various high-profile entities giving conflicting views as to what the future will hold in terms of regulation.
It also follows the recent announcement by the Russian Association of Cryptocurrency and Blockchain to send a draft law to the Russian Parliament on the legalisation of initial coin offerings.
Meanwhile, Russian President Vladimir Putting has also said that cryptocurrencies were risky.
"The usage of cryptocurrencies carries serious risks. I know the Central Bank's position on that," he said.
However, he acknowledged that new technology solutions in the banking area should not be unduly restricted.
"We should use advantages provided by new technology solutions in the banking sphere. It is important at the same time not to make extra barriers; required conditions should be created instead for further growth and improvement of the national financial system."