With the growing capitalization of the crypto economy, Russians have been making crypto transactions worth billions of dollars a year, data gathered by the Central Bank of Russia shows. Russian residents are some of the most active participants in the crypto market, the regulator has acknowledged.
Russians Among Most Active Crypto Users, Central Bank Admits
True to its hardline stance on decentralized digital money, the Central Bank of Russia (CBR) has recently stated that cryptocurrency operations “carry significant risks for financial stability and investors as well as climatic risks.” The warning has been issued with its Financial Stability Overview for the second and third quarter of 2021.
The monetary authority has recognized the rapid growth in the capitalization of the digital currency market this year. According to its analysis, quoted by Forklog, increased investor interest in technologies such as blockchain, smart contracts, decentralized finance, and stablecoins has played a key role in the rising crypto prices.
Citing various analytical studies, the financial regulator has admitted that the residents of the Russian Federation are among the most active participants in the crypto space. Russians are also some of the most frequent users of cryptocurrency platforms. Russia is one of the leaders in terms of number of visits on Binance, the world’s leading crypto exchange.
Referring to estimates by large financial institutions surveyed this past July, Bank of Russia notes that the annual volume of digital currency transactions made by Russians amounts to around $5 billion. However, the CBR also remarks that the anonymous nature of cryptocurrencies contributes to their use in criminal activities such as money laundering and terrorist financing.