This article briefly:
The Central Bank of Russia has noticed a sharp increase in the criminal use of cryptocurrencies.
· “Almost all” illegal schemes in 2023 involved cryptocurrencies, according to the report.
·Binance exited the Russian market due to compliance issues, marking a change in the cryptocurrency landscape.
A recent report from the Russian Central Bank highlighted a significant increase in criminal adoption of cryptocurrencies. While the numbers for 2022 are considerable, nearly all fraud schemes in 2023 are cryptocurrency-related.
It is worth noting that by 2023, cryptocurrencies are the main vehicle used by “almost all” pyramid schemes and illegal brokerage firms to conduct fraudulent activities.
Cryptocurrency scams increase in Russia, according to central bank
The Central Bank of Russia stated in a recent report that by 2022, all other fraudulent investment projects in the country used cryptocurrencies. However, this ratio worsened further in the following year (2023).
“Since 2022, there has been a fake investment project attracting cryptocurrencies. By 2023, almost all pyramids and illegal brokers are offering in-house token investments or accepting cryptocurrency donations.”
Statista predicts that Russia’s annual cryptocurrency revenue will reach $2.8 billion by 2028.
In July 2023, foreign media reported that President Putin had signed a digital ruble law.
Just a year ago, in July 2022, Putin signed a bill banning cryptocurrencies as a payment option within the country.
However, not all Russians are enthusiastic about the digital rupee. In August 2023, a Bankinform survey revealed that a large proportion of respondents believed the digital ruble was potentially fraudulent.
The survey showed that 13% of participants are eager to use the digital ruble. However, 34% of respondents expressed interest in the new ruble but had no intention of using it.
Cryptocurrency exchange Binance recently exited Russia
In September 2023, cryptocurrency exchange Binance announced it was withdrawing from the Russian market due to compliance concerns.
Binance has sold its business to CommEX. Noah Perlman, chief compliance officer at Binance, said:
“As we look to the future, we recognize that operating in Russia is incompatible with Binance’s compliance strategy. We remain confident in the long-term growth of the global Web3 industry and will focus our efforts on the 100+ other countries where we operate nation."
Meanwhile, several Russian parliamentary figures have recently expressed support for a central bank digital currency (CBDC).
In September 2023, Anatoly Aksakov, chairman of the Russian Parliament’s Finance Committee, believed that as blockchain technology becomes more integrated into the global financial system, the role of traditional banks will diminish.
According to him, the digital ruble, with the help of blockchain technology and advanced algorithms, can perform most of the current functions of banks. #加密货币 #俄罗斯央行