The Illicit Cash-to-Cryptocurrency Exchange Sector in Russia
The illicit cash-to-cryptocurrency exchange sector in Russia is an enormous operation, with billions of dollars being transferred through Moscow, which has emerged as a primary center for these exchanges. Despite recent government efforts to suppress such activity, including conducted raids aimed at controlling capital flight and the use of cryptocurrency for illicit transfers, industry experts suggest that completely shutting down these trading offices is nearly impossible.
Challenges in Eradicating Exchange Offices
Alexey Korolenko, the executive director of Cifra Markets, pointed out that many exchange offices in the bustling financial district of Moscow-City remain operational. He stated the sheer number of these offices complicates any attempts to eradicate them entirely, saying:
“Not all exchange offices in Moscow-City have ceased operations because there are actually a huge number of them.”
Korolenko shared that cash-to-crypto transactions are a significant contributor to the volume of cryptocurrency moving to other markets, estimating these transactions range from hundreds of millions to potentially several billion dollars each day.
Recent Police Actions
Recent police actions have been notable; reports indicated that authorities seized over $10 million in cash during operations targeting two of Moscow’s largest exchanges. These raids focused on halting illegal financial transfers to foreign markets.
Moscow’s Role in the Crypto Landscape
Korolenko emphasized Moscow’s importance in the crypto landscape, referring to it as the “key hub through which the lion’s share of the entire gray cryptocurrency turnover passes.” However, he acknowledged the challenge in estimating the exact volume flowing through the city.
Advice for Market Participants
To navigate these uncertain and potentially risky waters, Korolenko advised participants in this market to utilize options that are legally sanctioned, ensuring that their activities remain transparent and secure.
