Russian Cryptocurrency Volumes on Major Exchanges Drop by 50%

Russian Cryptocurrency Volumes on Major Exchanges Drop by 50%

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2022-03-05 08:51:24

Despite the increase in economic sanctions against Russia, the number of cryptocurrencies purchased with rubles on major exchanges continues to decrease

Data from blockchain analytics firms shows that Russian crypto buying and trading on major exchanges has stalled, fueling theories that the country will turn to digital assets. to avoid sanctions.

When Bitcoin surged more than 15% last week, some industry experts attributed it to a spike in Russian purchases of the cryptocurrency in the face of growing economic sanctions. However, this theory appears to be false as data from Chainalysis shows that the volume of crypto transactions in rubles was just $34.1 million on March 3, about half of its recent peak. was $70.7 million a week ago on Feb. 24.

Speak on the issue of buying cryptocurrency driven by sanctions with Bloomberg. “Russian volumes have been relatively small to date, suggesting that higher price action is due to investors locating expected increased demand from Russia, rather than expected demand from Russia,” said Citigroup analyst Alexander Saunders. compared to Russia’s own needs”.

Despite experts dismissing the idea that cryptocurrencies can help Russia get around economic sanctions, the US and EU are still increasing their regulatory scrutiny of digital assets. number.

Recently, the state of New York increased its blockchain oversight to prevent cryptocurrencies from being used to support Russian interests.

NY Governor Kathy Hochul issued an executive order on February 27 directing state agencies to divest from Russian entities and companies, as well as organizations that provide support to them. She speaks:

“New York boasts the nation’s largest Ukrainian population and we will use our technological assets to protect them and show Russia that we will hold them accountable.”

Highlighting the other side of the story, Jake Chervinsky, head of policy at the Blockchain Association in the United States, went so far as to call these concerns about cryptocurrencies “completely unfounded.” .

Continuing to echo this point is Ari Redbord, head of legal and government affairs at crypto crime investigator TRM Labs, saying that it is too late for crypto assets to provide enough liquidity for Russia and the public nature of the blockchain was enough to deter those seeking to circumvent sanctions.

“Russia cannot use crypto to replace potentially frozen hundreds of billions of dollars.”

In the face of looming regulatory action from the international community, many of the world’s leading cryptocurrency exchanges have decided to blacklist sanctioned individuals and organizations. However, Binance refused to censor the accounts of “innocent” Russian customers.

According to: Cointelegraph

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