Russia Reports Surge in Crypto Fraud
Russia sees crypto crime spike; Binance exits over compliance concerns.
The Central Bank of Russia has reported a significant increase in cryptocurrency use for illegal activities. The majority of frauds in 2023 involved digital currencies, highlighting a trend where crypto has become the main medium for pyramid schemes and unauthorized trading.
Crypto frauds are on the rise in Russia, as observed by the Central Bank. While in 2022, half of the fake investment scams used crypto, this figure jumped to nearly all in 2023. Projections suggest that crypto revenue in Russia could hit $2.8 billion by 2028. Despite this, President Putin's recent legislation has been mixed, with a digital ruble law signed in July 2023 following a 2022 ban on crypto for payments.
A survey indicated mixed feelings among Russians about the digital ruble, with 13% willing to use it but 34% curious without plans to adopt it. Binance, a major crypto exchange, withdrew from Russia in September 2023, citing compliance reasons. This exit reflects the changing regulatory landscape in Russia and Binance's commitment to legal operations elsewhere.
Russian lawmakers have increasingly backed Central Bank Digital Currencies (CBDC), with significant interest in how blockchain technology could reduce traditional banking roles. Anatoly Aksakov, a key parliamentary figure, suggested that the digital ruble could take over many banking functions through blockchain and algorithms, signaling a shift towards more digital financial systems.
