Market News

Russia's Growing Crypto Ecosystem: Bypassing Sanctions Through Emerging Platforms

Recent findings by blockchain analytics firm Elliptic reveal that several cryptocurrency exchanges linked to Russia are facilitating transactions that circumvent Western sanctions.

The report identifies five platforms that, while mostly unsanctioned, are continuing to attract high-volume crypto transactions.

Concerns are mounting among European officials, who are contemplating stricter regulations, including a potential blanket ban on crypto dealings with Russia.

Among these platforms, only Bitpapa faces U.S. sanctions, having been designated in March 2024 for alleged sanctions evasion.

Elliptic's analysis shows that a significant portion of transactions on Bitpapa is tied to sanctioned entities, with the platform employing tactics to obscure its activities.

Another notable exchange, ABCeX, has been flagged for processing over $11 billion in crypto while operating from the same building previously occupied by a now-seized exchange.

In addition, Exmo has faced scrutiny for its lingering ties to sanctioned entities, despite officially exiting the Russian market.

The activity of Rapira has also been closely monitored, as it allegedly processed significant amounts to sanctioned exchanges, prompting investigations by Russian authorities.

The final platform, Aifory Pro, provides cash-to-crypto services and has been linked to transactions traced back to Iranian exchanges.

Overall, this network demonstrates how enforcement actions may drive businesses underground rather than eliminate them altogether.