Crypto

The Rise in Popularity of Cryptocurrency in Russia

Published

5 months ago

October 15, 2025

The Rise in Popularity of Cryptocurrency in Russia

By several measures, Russia has become a major crypto market despite stringent sanctions. Chainalysis ranked Russia 10th globally on its 2025 Crypto Adoption Index, the highest of any Eastern European country. Independent research estimates 9.2 million Russians (~6% of the population) actively hold cryptocurrency as of mid-2024, though up to 20 million may have engaged with crypto at some point, per broader surveys.

Adjusted for population and purchasing power, Russian on-chain crypto flows now rival those of major Western economies. In fact, Chainalysis notes Eastern European nations, led by Russia and Ukraine, dominate adoption.

This data suggests crypto has penetrated well beyond niche circles in Russia, with millions of residents now holding or trading digital assets.

Young Russians Drive Crypto Adoption Amid Economic Pressures

Crypto use in Russia is driven largely by young, digitally savvy investors. Surveys show that awareness of digital currencies is very high. By late 2024, roughly 66 percent of Russians had at least some knowledge of crypto, while actual participation remained modest. The survey found about 21 percent of adults had tried crypto at least once, mainly out of curiosity or for savings, and only 2 percent were active traders.

Importantly, holders are mainly young people, mirroring global trends. One report noted that the largest share of crypto owners worldwide (34 percent) is aged 24–35, reflecting global trends in Russia as well. Many cite ruble inflation, banking limits, or FOMO as motivations.

In recent years, the Russian government itself has viewed crypto as an alternative payment method to use while sanctions are in place. A weaker ruble has also made Bitcoin and stablecoins attractive to some households as hedges. However, the average Russian crypto holder still appears wary.

In a further survey by the financial marketplace “Sravni” from 2024, 89 percent of respondents owned no crypto, and 79 percent said they did not plan to buy any. Even so, that 15–21 percent minority of adopters represents millions of people, and adoption is rising steadily.

JUST IN: 🇷🇺 Russian Deputy Finance Minister says an estimated 20 million people are using #Bitcoin and crypto in Russia.
“We need our own infrastructure to have both economic and technological benefits” 🚀 pic.twitter.com/SXEvBScGFq
— Bitcoin Magazine (@BitcoinMagazine) October 10, 2025

Russia’s Crypto Ecosystem: Global Exchanges vs. State Control

Russia’s crypto ecosystem continues to be shaped by both global exchanges and a large number of unregulated local/offshore platforms. Exchanges like Binance and Bybit, often offering Russian-language support and P2P mechanisms, remain heavily used even as regulators tighten restrictions.

According to a 2025 Chainalysis report, over 100 no-KYC/unlicensed platforms were active in 2024, receiving more than $1.5 billion in value, largely from Russian clients. Meanwhile, the state is investing in its own digital infrastructure.

The Finance Ministry is developing an Experimental Legal Regime (ELR) with the central bank to create domestic crypto rails. Deputy Finance Minister Ivan Chebeskov believes that building a national crypto ecosystem, including exchanges and mining, is the way to go.

While P2P trading dominates, regulated domestic exchanges are emerging, which are now required to register and keep user records, as local firms expand crypto and payment services.

Sberbank and MOEX Lead Russia’s Institutional Crypto Push

Corporate Russia is warming to Bitcoin and all things blockchain. In mid-July, Sberbank, the country’s largest lender, announced plans to offer crypto custody services, aiming to lead the market. Sberbank’s alternative payment solutions division executive director, Anatoly Pronin, suggested regulating crypto like bank deposits, with state-backed guarantees, a move analysts see as expanding state control over a space still dominated by private and foreign custodians.

Other giants like the Moscow Exchange (MOEX) are rolling out crypto-linked products for accredited investors. In June this year, MOEX launched ruble-settled Bitcoin futures tied to the U.S. ETF IBIT. The central bank now allows financial institutions to offer non-deliverable crypto derivatives and securities to qualified investors. Crypto inflows into Russia jumped about 51 percent in Q1 2025, reaching 7.3 trillion rubles ($81.5 billion).

Mining companies are scaling operations, and payment networks are testing pilots. Late 2024, President Vladimir Putin endorsed crypto innovation, legalizing all mining and declaring that “no one can prohibit the use of Bitcoin,” showing growing official comfort with crypto’s role in trade, despite ongoing regulatory caution toward retail use.

Russia’s Crypto Rules: Balancing Control and Global Trade

Russia’s crypto policy is restrictive but gradually shifting. Since 2021, crypto ownership and trading have been legal, though domestic payments remain banned. Transactions over 600,000 rubles must be reported, and providers face strict KYC/AML rules.

In July 2024, the Russian parliament approved a law allowing crypto in international trade to bypass sanctions. This created an experimental payment system for exporters while keeping local crypto payments illegal.

The government has moved from near bans in 2021 to a more strategic stance, tightly controlling crypto at home but embracing it abroad.

At the same time, regulators warn consumers about volatility and fraud and continue expanding oversight. For example, proposals would require all crypto exchanges (foreign or domestic) to register and retain users’ data for years. In practice, this means Russians must use vetted Virtual Assets Service Platforms (VASPs) or peer-to-peer (P2P) channels, not anonymous markets, if they want a legal crypto account.

Russia’s Crypto Future: Mainstream by 2025?

Russia’s crypto market is growing quietly but steadily in the face of tough regulations. A tech-aware population, plus economic pressures like inflation and sanctions, are driving interest in digital assets.

Millions of Russians now include crypto in their investments, and banks are building systems to support it. With backing from Sberbank and the Finance Ministry, crypto is moving from the margins to the mainstream.

2025 could mark the year it becomes a recognized part of Russia’s financial system.

#Crypto #Blockchain #DigitalAssets #DeFi #Russia

Author: Ayanfe Fakunle

The editorial team at #DisruptionBanking has taken all precautions to ensure that no persons or organizations have been adversely affected or offered any sort of financial advice in this article. This article is most definitely not financial advice.

Debate Brews Over Crypto Kiosks As Lawmakers Consider Potential Ban

Published

2 hours ago

February 27, 2026

Press Room

Debate Brews Over Crypto Kiosks As Lawmakers Consider Potential Ban

Lawmakers Consider Crypto ATM Ban as Scam Losses Rise — Including in Central Minnesota

Minnesota lawmakers are considering banning cryptocurrency kiosks as scam losses continue to rise across the state—including in Central Minnesota.

There are currently about 350 crypto kiosks operating statewide, located in places like gas stations, convenience stores, and grocery stores. These machines allow users to deposit cash and convert it into cryptocurrency, which can then be sent electronically.

Law enforcement officials say scammers are increasingly directing victims to use these kiosks because once the money is sent, it is extremely difficult—if not impossible—to recover.

Police say scams often begin with a phone call, text, or online message. In many cases, scammers pose as government officials, tech support workers, or even romantic partners. Victims are eventually told to withdraw cash and deposit it into a crypto kiosk to “protect” their money or resolve a supposed emergency.

Central Minnesota has seen similar cases. Because St. Cloud serves as a regional hub for shopping and services, crypto kiosks are available locally, giving scammers access points to target area residents.

Some say kiosks also serve legitimate users

Despite the concerns, crypto kiosks do offer legitimate benefits. They allow people to purchase cryptocurrency quickly using cash, without needing a traditional bank account, credit card, or online exchange. Supporters say this can make cryptocurrency more accessible, especially for people who prefer cash transactions or have limited access to banking services.

Crypto kiosks can also be used to send money quickly, including international transfers, without relying on traditional wire services. Some users view them as a convenient way to invest in cryptocurrency or move money electronically without going through a bank.

Companies that operate the machines say the vast majority of transactions are legitimate and that kiosks include warnings about scams. They argue the focus should be on stopping scammers, not banning the machines entirely.

Lawmakers weighing next steps

Supporters of the proposed ban say removing the kiosks could help prevent fraud and protect vulnerable residents, particularly older adults. Law enforcement officials told lawmakers that crypto kiosk scams have resulted in significant financial losses statewide.

Minnesota passed regulations in 2024 requiring some safeguards, including limits on deposits for new users and refund requirements in certain fraud cases. But officials say scammers have continued to adapt.

The bill remains under consideration at the Capitol.

In the meantime, authorities urge Central Minnesota residents to be cautious. Officials emphasize that legitimate government agencies, law enforcement, and businesses will never ask someone to deposit cash into a cryptocurrency kiosk.

As cryptocurrency becomes more common, lawmakers are now weighing whether the risks to consumers outweigh the convenience and accessibility these machines provide.

10 (More) Hilariously Bad Google Reviews of Central MN Landmarks

Crypto

Cryptocurrency Investment Fraud: Bizman loses Rs 2.6 cr to crypto, investment fraud | Hyderabad News – The Times of India

Published

14 hours ago

February 26, 2026

Press Room

Hyderabad: A 69-year-old businessman from Somajiguda lost 2.65 crore allegedly in a cryptocurrency and stock investment fraud. Based on his complaint, Hyderabad Cyber Crime police have registered a case.The complainant was first contacted by a fraudster posing as Ramya Krishnan on Aug 30, 2025 through Facebook. She persuaded the victim to invest in a cryptocurrency and stock trading platform, Polyus Finance PFP Gold, hosted at the domain pfpgoldfx.vip, promising high returns to finance his proposed resort and apparel ventures.Fraudsters provided the victim a contact number for daily communication and sent screenshots showing notional profits credited in his wallet in USDT cryptocurrency. To build trust, the fraudster even allowed the victim a token withdrawal of 4,300 on Sept 12, 2025.Encouraged, the victim transferred over 2.65 crore in 10 transactions between Sept 10 and Dec 39, 2025 to various current accounts provided by the accused.When he attempted to withdraw his ‘earnings’, the accused demanded an additional 15% conversion commission. After he refused, the website became inaccessible and calls to the fraudsters went unanswered.Realising that he was duped, the victim filed an online report on the National Cybercrime Reporting Portal (NCRP) before approaching the Cyber Crime police on Feb 25.Based on his complaint, a case was registered under Sections 66C and 66D of the Information Technology Act and Sections 111(2)(b) (Organised crime), 318(4) (Cheating), 319(2) (Cheating by personation), 336(3) (Forgery for purpose of cheating), 338 (Forgery of valuable security, will, etc.) and 340(2) (Using as genuine a forged document or electronic record) of the Bharatiya Nyaya Sanhita on Wednesday. Police were analysing financial transactions to identify and arrest the accused.

Crypto

Terror groups receive $1.7b. from Iran through Binance | The Jerusalem Post

Published

1 day ago

February 26, 2026

Press Room

Terror groups receive .7b. from Iran through Binance | The Jerusalem Post

Iranians were able to access more than 1,500 Binance accounts last year, and $1.7 billion was transferred from two of them to terrorist proxies, The New York Times reported Monday.

That was a potential violation of global sanctions, the report said, citing company records and documents collected by internal investigators.

The cryptocurrency exchange site reportedly fired or suspended at least four employees cited in the internal investigation. The company blamed “violations of company protocol” relating to its clients’ data, the Times reported.

The report came days after The Jerusalem Post spoke with experts from blockchain intelligence platform NOMINIS.io about how the Iranian regime was evading Western sanctions through cryptocurrencies.

The regime maintains a steady income using cryptocurrency through oil sales to Russia and China, NOMINIS CEO Snir Levi said at the time.

Binance founder Changpeng Zhao, who pleaded guilty to failing to implement a program to prevent money laundering, arrives for his sentencing in federal district court in Seattle, Washington. (credit: REUTERS/Deborah Bloom)

Regarding the latest scandal, he told the Post this week: “The latest allegations about Binance come months after the lawsuit by the victims’ families of October 7 – the ongoing Balva [versus] Binance case.

The majority of the allegations can be easily confirmed by on-chain data. There are thousands of cases where money has been sent and received to and from wallets that have clear connections to Iran.”

Binance founder Changpeng Zhao is being sued by the families of American victims and hostages of the October 7 massacre. He has been accused of knowingly enabling Hamas, Hezbollah, Palestinian Islamic Jihad, and Iran’s Islamic Revolutionary Guard Corps to transfer more than $1b. through its platform, including more than $50 million after the October 7 massacre.

Zhao pleaded guilty to anti-money-laundering violations in connection with Binance in 2023. US President Donald Trump pardoned him last October.

“They say what he did was not even a crime,” Trump told reporters last October. “It wasn’t a crime. That he was persecuted by the Biden administration, and so I gave him a pardon at the request of a lot of very good people.”

Binance representative Rachel Conlan said the accounts linked to the $1.7b. in Iranian transactions have been removed and the relevant authorities were informed.

“Any suggestion that Binance knowingly allowed sanctionable activity to continue unchecked is incorrect and defamatory,” she said, despite Zhao’s earlier admission of anti-money-laundering violations.

More than half a dozen compliance officials have left Binance, including a sanctions manager and the leader of the enterprise compliance team, over the past few months, the Times reported.

“No investigator was dismissed for raising compliance concerns or for reporting potential sanctions issues,” Conlan said in a statement to The Guardian.

Democrat senator opens inquiry into cryptocurrency company

While Conlan insisted there was no wrongdoing, US Sen. Richard Blumenthal (D-Connecticut) opened an inquiry into Binance on Tuesday, seeking records of the company’s dealings in Hong Kong , where funds have previously been transferred in a network against sanctions.

“Binance appears to have ignored warnings and recommendations to prevent Iranian money-laundering schemes on its cryptocurrency exchange,” Blumenthal wrote in a letter to Binance co-chief executive Richard Teng.

“According to documents obtained by the Times and the Journal, Binance was even warned that Hexa Whale was financing terrorist organizations such as the Yemeni Houthis, and internal investigators found cryptocurrency transfers to wallets associated with Iran’s Islamic Revolutionary Guards Corps and payments to crew members of Russia’s sanctions-evading shadow fleet of oil tankers,” he wrote.

“Instead of actually preventing illicit use, Binance has sought to evade accountability and influence the White House through lobbying and a financial partnership with World Liberty Financial (WLFI), the cryptocurrency firm owned by the sons of President Trump and his special envoy Steve Witkoff… This influence campaign has worked: In May 2025, the Securities and Exchange Commission announced that it was dismissing a lawsuit against Binance for lying to regulators and mishandling funds, followed in October by the stunning Presidential pardon of founder Changpeng Zhao.”

“The scale of the newly revealed illicit transfers – uncaught until nearly $2 billion flowed to sanctioned entities – and the unexplained firing of internal investigators call into question Binance’s compliance with American sanctions and banking laws, and its 2023 agreement to resolve the previous federal investigation,” Blumenthal wrote.