Surge in Traffic to Global Crypto Exchanges from Russia Sparks Central Bank Sanctions Warning
Over the past two quarters, Russia has seen a significant surge in traffic to global cryptocurrency exchanges, prompting officials to issue warnings about the risks associated with Western sanctions. According to a study by the Central Bank of Russia, some of the largest cryptocurrency exchanges have experienced a 16.4% increase in visits, reaching a total of 104.6 million.
Rising Activity on Global Platforms
The Central Bank of Russia’s recent study highlights a dramatic increase in cryptocurrency transactions by Russians on global trading platforms over the past two quarters. This spike has led officials to caution that users are facing heightened risks.
As detailed in a local report, the number of visits to major cryptocurrency exchange websites surpassed 104.6 million during this period, marking a 16.4% rise compared to web traffic in the second and third quarters of 2023.
User Growth and Market Impact
In addition, the average number of independent Russian users on major cryptocurrency exchanges grew by 15.1% monthly. In the first quarter of 2024, these users constituted 7% of the total traffic on these platforms. However, this share remains below the 9% peak seen in the first quarter of 2023.
Potential Risks and Sanctions
The report underscores the potential risks users face due to the increased adoption of cryptocurrencies. Specifically, if Western nations intensify their pressure on digital asset issuers, Russian users could encounter additional challenges and uncertainties.
The report states: “It is crucial to consider the risks posed by sanctions from unfriendly countries. The possibility of losing funds cannot be ruled out if they are blocked by stablecoin issuers.”
Central Bank’s Recommendations and Market Shifts
The Central Bank of Russia has already issued recommendations regarding the handling of cryptocurrencies, expecting local banks to adhere to these guidelines. Some of these recommendations include prohibiting transactions involving financial instruments related to crypto assets and banning advertising services associated with cryptocurrency circulation.
Binance’s Market Exit and Reconfiguration
Meanwhile, the report also notes how Binance’s exit from the Russian market in the third quarter, which accounted for 47% of total web traffic, led to a reconfiguration of the Russian crypto market. The study shows that the market share of five emerging-market-focused crypto platforms increased from 39% in the third quarter of 2023 to 64% in the first quarter of 2024.
Despite Binance’s departure from the Russian market in September 2023, it still held a 16% market share.
