Russian Cryptocurrency Volumes on Various Exchanges Drop 50%


Regardless of the growing economic sanctions against Russia, the number of cryptocurrencies bought with rubles on several major cryptocurrency exchanges is falling drastically.

According to data from the display of blockchain data aggregators, Russian collateral for crypto trading on major crypto exchanges is falling sharply. This disproves the idea that Russia will use crypto assets when maneuvering sanctions.

Last week, as Bitcoin price surged more than 15%, some crypto experts suggested the rally was related to Russians buying crypto assets amid growing economic sanctions.

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Moreover, this belief seems contradictory as Chainalysis showed data and revealed cryptocurrency trading in rubles. It fell to $34.1 million on Thursday, which is roughly a 50% drop since the recent high of $70.7 million last week on Feb. 24.

Reactions from Citigroup Analysts to the Cryptocurrency Situation

Commentary on the topic of sanctions-oriented crypto purchases to Bloomberg. The Alexander Saunders-Citigroup analyst replied that trading volumes have been relatively small lately. However, he also suggested that this PA is higher as traders and investors prepare for expected increasing demand from Russia rather than the country demanding it for itself.

Regardless of experts’ debunking, cryptocurrency could be essential to help Russia evade sanctions. But unfortunately, the EU (European Union) and the United States are still boosting their regulatory assessments of cryptocurrencies.

Cryptocurrency Market is Expected to Rise | Source: Crypto Total Market Capitalization on TradingView.com

Recently, New York State has increased its blockchain monitoring capabilities to further prevent digital currencies from being used to aid Russian interests.

New York Governor opposes Russian cooperation with the state

On February 27, New York Governor Kathy Hochul issued an executive order to inform agencies to end all collaborations with Russian companies and institutions, even entities and agencies providing assistance to them.

In her statement, she emphasized that New York is home to the largest Ukrainian population in the country. And will use all technological means to protect her people, thus showing Russia that they will be held accountable.

The Blockchain Associations head of policy in the United States – Jake Chervinsky, described their concerns as “totally unfounded. In his tweethe explained his perspective on the current situation.

He stated that Russia cannot and will not use cryptocurrencies to evade economic sanctions. Chervinsky stressed that misunderstanding these concerns: how sanctions work, how cryptocurrency markets work, how Putin wants to reduce sanctions, etc.

Ari Redbord, the head of Legal and Government Affairs at TRM Labs, also commented on further strengthening this perspective. He explained that it is currently too late for Russia to use cryptocurrencies to handle its sanctions.

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He also added that the transparent nature of cryptocurrencies and blockchains would allow the entire public to track transactions and spot individuals or entities trying to maneuver sanctions.

Featured image from Pixabay, chart from TradingView.com



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