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The Russian Central Bank has reported a significant increase in transactions conducted by citizens on cryptocurrency exchanges and peer-to-peer (P2P) trading platforms.
According to the Russian media outlet RBC, the bank released a financial stability report detailing several observations regarding crypto transactions by Russian residents.
The regulator analyzed trends observed from the fourth quarter of the 2023 financial year through the first quarter of the 2024 financial year.
The bank stated that the “total web traffic of Russian users on the websites of the largest cryptocurrency platforms” rose by 16.4% “compared to the second and third quarters of 2023.”
Russian Central Bank: Citizens More Active on Crypto Platforms
The bank reported that Russians made a total of 104.6 million visits to crypto exchanges and P2P sites.
Additionally, the average monthly number of unique Russian IP address holders accessing “major crypto exchanges” increased by 15.1%, the bank noted.
This indicates that 7% of all traffic on these major overseas crypto exchanges originates from Russia, the bank added.
However, this figure remains below the 9% peak recorded by the bank in the first quarter of the 2023 financial year.
The bank utilized a tool called Transparent Blockchain to conduct its calculations.
This tool was developed by the Federal Financial Monitoring Service (Rosfinmonitoring) to combat crypto-powered money laundering.
Russian officials claim that Transparent Blockchain enables them to identify the “true” identity of crypto users across multiple blockchain protocols.
The Russian Parliament proposes to ban the organization of cryptocurrency circulation in Russia from September 1, 2024, as well as the advertising of cryptocurrencies. Only miners and projects approved by the Central Bank will be able to obtain the right. However, this proposal…
— Wu Blockchain (@WuBlockchain) April 29, 2024
The report suggests that Russians remain interested in high-capacity crypto assets such as Bitcoin (BTC) and Ethereum (ETH). They also appear to utilize USD-pegged stablecoins like USDT and USDC.
In total, transactions “potentially attributable” to Russians amounted to over $50.2 billion during the same period.
Analysts noted that this figure includes not only crypto trades but also P2P payments, remittances, and “payments for goods and services.”
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RBC noted that the Russian Central Bank report “does not publish a list of the crypto platforms it has monitored.”
However, it added that “previous Central Bank financial risk reports” have included data from platforms such as Binance, Bybit, MEXC, KuCoin, and others.
Part of the reason for the spike in transactions may be attributed to Binance’s exit from the Russian market.
The bank estimates that at the time of its exit from Russia, Binance controlled just under half of the nation’s crypto market.
The bank further warned Russian crypto users about the “dangers” and “risks” associated with holding crypto in Russia.
It stated that it was “necessary to assess the risks associated with possible sanctions from unfriendly countries.”
The U.S. has slapped Russia with more sanctions – this time targeting a number of crypto-related entities and individuals due to potential evasions aimed at funding the Putin-led country’s invasion of Ukraine.https://t.co/c8uQC1K7FB
— Cryptonews.com (@cryptonews) March 26, 2024
The bank claimed that with rising tensions between the West and Moscow, holders of Russian USDT and USDC face the risk of “loss of access to their funds.”
The bank stated that such losses “cannot be ruled out if [Russians] are blocked by stablecoin issuers.”
This week, we welcomed the @EUCouncil decision on the use of proceeds from immobilised Russian assets for Ukraine.
The decision will allow the extraordinary revenues from immobilised assets of the Russian Central Bank, to be used to support Ukraine’s most immediate needs.
— European Commission (@EU_Commission) May 26, 2024
RBC noted that regulators in the US and UK are increasing their scrutiny of “transactions with stablecoins,” as “control over crypto exchanges is being tightened.”
The bank further warned that governments of “unfriendly nations” could order crypto exchanges to “strengthen control over user transactions, including within the framework of sanctions restrictions.”
However, in its “recommendations” for Russian “financial organizations,” the bank hinted at upcoming Russian regulations.
The bank “recommended” that domestic financial providers should “not offer financial instruments tied to cryptoassets.”
It also advised banks “not to advertise services related to the circulation of cryptoassets.”
The post Russian Central Bank Flags Sharp Rise in Crypto-related Activity appeared first on Cryptonews.
