There are a number of difficulties for Russian investors.
Cryptocurrencies will not help Russia fight Western sanctions. Analysts at the Moody's rating agency are convinced of this, they said in their report, according to Russian media.
Analysts pointed to the following problems: limited size and low liquidity of the cryptocurrency market in Russia; use by cryptocurrencies of measures invested in the fight against money laundering and terrorist financing; sanctions against certain platforms and cryptocurrencies.
What are the barriers to the use of cryptocurrencies:
- Limited size and low liquidity of the cryptocurrency market in Russia. On the stock exchange, the liquidity of the ruble/bitcoin pair is about $ 200,000. On the OTC trading services used to conceal transactions, the so-called mixing services, the liquidity is about $ 30 million per day. At the same time, according to the study, according to the US Treasury, Russian financial institutions conduct international transactions worth about $ 46 billion daily, 80% of which are carried out in US dollars.
- Implementation by cryptocurrency exchanges of measures invested in the fight against money laundering and terrorist financing. Regulated cryptocurrencies must meet the requirements of anti-money laundering legislation to track illegal transactions, the report said: As soon as the transaction is marked, law enforcement agencies can track its history and monitor its movement. ” Moody's cites this factor as another reason why sanctions are limited.
- Sanctions against some sites. On April 5, the US Treasury Department imposed sanctions on Hydra Market, the largest Russian-language darknet platform, and on the cryptocurrency exchange Garantex Europe OU. The latter is registered in Estonia, but, according to the US Treasury, it operated mainly from Moscow and St. Petersburg. According to the agency, transactions on this platform worth more than $ 100 million are related to criminal activity and darknet markets. The release of the Ministry of Finance also states that about 86% of illegal bitcoins received by Russian virtual currency exchanges in 2019 came from Hydra.
Read also: Cryptocurrencies can replace the Russian ruble – the Central Bank of Russia
Earlier it was reported that SCFM found signs that Russia is using cryptocurrency to circumvent sanctions.
