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The surge in Russian traffic to global cryptocurrency exchange platforms in the last two quarters has prompted officials to issue a warning about the risk of Western sanctions. According to a central bank study, Russian traffic to some of the largest crypto exchanges increased by 16.4%, reaching 104.6 million visits.
Russian Share of Global Traffic Still Below 2023 Peak
According to a recent study conducted by the Russian Central Bank, crypto trades by Russians on global exchange platforms surged during the last two quarters, prompting officials to issue warnings about increased risks for users. As detailed in a local report, visits to the websites of some of the largest crypto exchanges in this period exceeded 104.6 million, representing a 16.4% increase compared to the web traffic observed in Q2 and Q3 of 2023.
Additionally, the average monthly number of unique Russian users on major crypto exchanges rose by 15.1%. These users accounted for 7% of the total traffic on these platforms in the first quarter of 2024. However, this share is still below the peak of 9% reported in Q1 of 2023.
The report also highlights the potential risks faced by users as a result of increased crypto adoption. Specifically, if Western countries intensify pressure on digital asset issuers, Russian users may encounter additional challenges and uncertainties, the report argues
“It is necessary to take into account the risks associated with possible sanctions from unfriendly countries. Loss of access to funds cannot be ruled out if they are blocked by stablecoin issuers,” the report stated.
Reconfiguration of the Russian Crypto Market
The Russian central bank has reportedly already published recommendations on dealing with cryptocurrencies that local banks are expected to adhere to. Some of the recommendations include banning the trade of financial instruments tied to crypto-assets, as well as prohibiting advertising services related to the circulation of crypto assets.
Meanwhile, the report also noted how the exit of Binance, which accounted for 47% of the total web traffic in Q3, led to the reconfiguration of the Russian crypto market. As shown by the study data, five crypto platforms targeting emerging markets have seen their share of traffic rise from 39% in Q3 of 2023 to 64% in Q1 of 2024.
Despite exiting the Russian market sometime in September 2023, Binance still accounted for a 16% share of the market, the report said.
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