Cryptocurrency trading volumes on major exchanges in Russia are falling. There has been recent talk that the Russians might be using crypto to avoid sanctions, but that doesn’t seem to be the case so far.
A few days after there was an increase in cryptocurrency volumes in Russia, these volumes are now falling on several major exchanges. More recent data shows that Russian use of cryptography is not particularly noteworthy. Chainalysis also reported that the usage isn’t out of the ordinary.
Chainalysis reported that crypto trade in rubles was just $34.1 million on March 3, which is a considerable drop from daily highs of over $150 million in 2021. all-time high in rubles peaked in May 2021 and has only fallen since then. This casts doubt on the narrative that crypto is becoming a safe haven for sanction-hit Russians.
There simply hasn’t been enough capital movement to conclude that the crypto market is taking a significant impact as a result of the Russian sanctions. However, it is still in its infancy, so there could be changes as sanctions begin to hit the Russian economy.
At the moment, there doesn’t seem to be much concern about the use of digital currencies in Russia. Western officials have expressed concern about this, as one of the talking points is the use of crypto to avoid sanctions.
Crypto, a topic of discussion in the Ukrainian-Russian crisis
Cryptocurrencies have become quite a topic of discussion in the current conflict in Europe. Uniswap has added a Ukraine donation feature, which has been praised by officials in the country. Many trading platforms have also made similar efforts to support this effort.
However, some Western authorities are concerned that cryptography is being used to flout sanctions. Some exchanges, like Coinbase and Kraken, have not halted operations in Russia. Officials fear they are acting as a way out.
There is also good news, as the amount of crypto donations entering Ukraine has been substantial. Tens of millions of cryptocurrencies have been estimated so far, and these numbers continue to grow.
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