Russia’s main bank noticed fewer people in the country are trading crypto. They found that Russians are not using big trading websites abroad as much as before.
According to RBC, the bank's data for the middle and end of 2023 shows that Russians are doing less with crypto. The bank saw a drop in how often Russians visited the biggest crypto trading websites worldwide.
The bank mentioned that Russians mostly get crypto through direct transactions between each other. They also said these types of transactions have increased a lot compared to last year.
The bank also talked about how Russian banks are getting better at recognizing these direct crypto transactions.
They said that when Russia introduces its digital ruble, it will lead to huge changes in how money works in the country. It's expected to be the most significant change in how money is used since the 1990s.
The Russian bank highlighted a significant shift in how people in the country are getting into crypto. They noted that peer-to-peer (P2P) transactions have become the primary way for Russians to acquire cryptocurrencies.
Furthermore, the average monthly volume of these P2P crypto transactions surged compared to the previous year. The bank also pointed out that Russian credit institutions are improving in their ability to detect and track transactions associated with P2P crypto trading, indicating increased oversight in this area.
Big crypto exchanges outside Russia aren’t letting Russian traders in because of sanctions from the US and EU. But the news says lots of Russians are finding ways around these rules. They’re still using these overseas exchanges to trade crypto.
Binance, one of the big exchanges, said they’re totally stopping their services in Russia. They’re selling their business there to CommEX. They’ve even stopped taking Russian money deposits and plan to stop letting people take their money out by the end of January next year.
The bank gave a warning about using other exchanges that might seem like options. They said these could be risky for regular people in Russia. They’re worried about platforms that specifically try to attract Russian users.
It's a bit uncertain whether crypto trading will increase in Russia in the near future. While many major international exchanges have barred Russian traders due to sanctions, reports suggest that some Russians are still finding ways to trade on overseas platforms despite these restrictions.
However, with platforms like Binance announcing a complete withdrawal from Russia and ceasing ruble deposits and withdrawals, the accessibility to these major exchanges might become more limited for Russian traders.
The warnings issued by banks about the risks of using alternative platforms targeting Russian users might also deter some from engaging in crypto trading.
So, while there might be a group finding loopholes to continue trading, the restrictions imposed by major exchanges and the cautionary advice from banks might potentially limit the overall rise of crypto trading in Russia in the immediate future.
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