- The volume of crypto transactions in Russia “almost doubled” this year.
- Yuri Chikhanchin, the head of Russia’s Financial Supervision Commission, made these claims in a recent interview.
The number of crypto transactions in Russia exceeded 185,000 during the nine months of this year. This number will triple by 2023.
Yuri Chikhanchin, head of Rosfinmonitoring, made these claims in an interview with a Russian media outlet on November 1. Rosfinmonitoring is Russia’s financial supervisory commission, responsible for combating money laundering and terrorist financing.
Chikhanchin said the number of transactions had “almost doubled” this year.
During the first nine months of 2022, Russian authorities had witnessed only 60,000 such transactions.
Crypto Use Amid Western Sanctions
Russia has been hit hard by economic sanctions since it invaded Ukraine. In response to the military action, the European Union (EU) has… general prohibition on offering crypto services to Russian residents and entities in October 2022.
The largest crypto exchange in the world, Binance [BNB], sold its Russian operations and left the country. It was alleged that Binance had violated sanctions by allowing Russian users to access the exchange.
Against this backdrop, it is interesting how Russia is witnessing a rise in crypto transactions, both in terms of number and volume.
At the same time, the Kremlin is closely monitoring the transfer of cryptocurrencies to Ukraine. A leading Russian news platform reported Last month, Russia charged a citizen with high treason for financing Ukrainian forces through cryptocurrency.
Chikhanchin also said his committee would work with domestic partners to create a unified database of “gray addresses” – crypto wallets believed to be engaged in illegal transactions.
Crypto regulation in Russia
Chikhanchin also said that it will be better once Russia makes laws around crypto regulation – whether legalization or ban. He added,
“Cryptocurrency is unfortunately actively used by drug dealers, terrorists and corrupt officials. Therefore, the decision to regulate cryptocurrency (according to the scenario of the Russian Ministry of Finance or the Bank of Russia) should be made as soon as possible.”
The bill remains pending due to disagreements between the central bank and the Ministry of Finance. While the former is opposed to the use of cryptocurrencies, the latter is more lenient.
Chikhanchin also noted that the digital ruble project is crucial as it is transparent in the order of operations.