Russian crypto exchanges help Kremlin evade sanctions
Amid unprecedented financial restrictions imposed on Russia after the invasion of Ukraine, the Kremlin is actively seeking ways to circumvent international sanctions. According to a new study by the analytical company Elliptic, five cryptocurrency exchanges play a key role in these efforts.
According to Elliptic, these exchanges, located in Moscow, St. Petersburg and Kazan, have processed more than $11 billion in cryptocurrency since February 2022. This is against the backdrop of the closure at the end of 2022 of the sanctioned Garantex exchange, which until then was one of the main channels for withdrawing funds from Russia.
The largest of the new 'replacement' exchanges is Exxex, registered in Moscow. According to Elliptic, it has processed transactions worth more than $5 billion since the beginning of 2022. Other participants in this 'crypto scheme' are Binaryx, Chatex, Finsite and Rubix.
Such activity of Russian crypto exchanges causes serious concern in the international community. According to Elliptic experts, these exchanges play a key role in helping Russia circumvent the financial restrictions related to the military invasion of Ukraine.
It is obvious that the Kremlin is using cryptocurrencies as a 'lifeline' to maintain the country's financial system and economy in the face of unprecedented pressure from the West. The Russian authorities are actively developing this area, including legalizing the circulation of digital assets within the country.
At the same time, the international community continues to tighten measures to limit the use of cryptocurrencies to circumvent sanctions. Law enforcement agencies and regulators are closely monitoring such illegal activities, seeking to block this channel of financing for Russia's military operations.