Cryptocurrency trading volumes are falling on major exchanges in Russia. Recent discussions have covered the fact that Russians could use cryptocurrencies to evade sanctions, but so far this does not seem to be the case.
Days after the increase in crypto volumes in Russia, these volumes are now falling on several major exchanges. Recent data suggests that crypto usage among Russians is not particularly noteworthy. Chainalysis also pointed out that usage is not out of the ordinary.
Chainalysis reported that crypto trading in ruble was only $34.1 million on March 3rd, which is a huge drop from the daily record of over $150 million in 2021. The all-time high crypto activity in the ruble peaked in May 2021 and has only gone down since. This casts some doubt on the statement that crypto is becoming a safe haven for sanctions-affected Russians.
There is not enough capital moving in to conclude that the crypto market is experiencing a meaningful impact as a result of sanctions on Russia. However, it’s still early days, so that could still change as sanctions begin to take hold of the Russian economy.
At the moment, there is not much concern about the use of digital currencies in Russia. Western officials are concerned about this, as one conversational point is the use of crypto to evade sanctions.
Crypto is a talking point in the Ukraine-Russia crisis
Cryptocurrencies have become something of an important thing in the ongoing conflict in Europe. Uniswap has added a donation feature in Ukraine, which has been appreciated by the country’s authorities. Several trading platforms are also making similar efforts to aid the effort.
However, some Western officials are concerned that crypto could be used to violate sanctions. Some exchanges such as Coinbase and Kraken have not ceased operations in Russia. Officials are concerned they will act as a measure.
There is also good news, as the amount of crypto donations coming to Ukraine is substantial. Tens of millions have been estimated in cryptocurrencies so far, and these numbers continue to grow.