Cryptocurrencies will not be able to help the Russian Federation to trade and do business in circumvention of Western sanctions – because of the limited market and the use of payment-tracking mechanisms on exchanges.
This is stated in a report of the rating agency Moody’s, writes RBC.
Analysts pay attention to the low liquidity and limited size of the cryptocurrency market in Russia. On the stock exchange, the liquidity of the ruble/bitcoin pair is about $200,000, on OTC trading services – about $30 million per day.
Russian financial institutions, in turn, make international transactions worth about $46 billion daily, 80% of which are in dollars, according to data from the U.S. Treasury Department.
Moody’s also notes the growing transparency of cryptocurrency trading platforms.
Regulated crypto exchanges must comply with anti-money laundering laws and “track and disable blacklisted accounts,” experts say.
They say it also makes it harder to use cryptocurrencies to circumvent sanctions.
Moody’s adds that some illegal sites that worked for the Russian audience fell under Western sanctions. Experts, in particular, cited the example of darknet platform Hydra Market and cryptocurrency exchange Garantex Europe OU, registered in Estonia, but, according to the U.S. Treasury Department, working mainly from Moscow and St. Petersburg.
The cryptocurrency market is considered too small to be allowed to circumvent sanctions imposed against Russia, Bloomberg wrote earlier.
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