Russia’s Cash-to-Crypto Market Moves $3B Daily, Analysts Sound Alarm
Despite government crackdowns, Russia’s gray cash-to-crypto market is still handling billions of dollars daily, with Moscow...
Quick overview
- Despite government crackdowns, Russia's gray cash-to-crypto market is handling billions daily, primarily in Moscow.
- Recent raids on exchanges indicate authorities' efforts to curb crypto use for capital flight, but complete shutdown is deemed impossible.
- Daily cash-to-crypto flows range from $100 million to $3 billion, with significant activity reported in local exchanges.
- Investors are advised to use legal channels to avoid government scrutiny, as the gray market continues to thrive amid regulatory challenges.
Despite government crackdowns, Russia’s gray cash-to-crypto market is still handling billions of dollars daily, with Moscow as the epicenter. Recent raids on two major exchanges in Moscow-City showed authorities are trying to curb crypto use for capital flight, but analysts say it’s impossible to shut down all of it.
Alexey Korolenko, executive director of Cifra Markets, said it’s impossible to close all the exchange offices. Many local exchanges are still operating, facilitating large cash-to-crypto transactions that feed both domestic and international crypto flows.
Volume and Transactions at a Glance
The Russian cash-to-crypto market is still very active despite the regulatory pressure:
- Daily flows: $100 million to $3 billion
- Main city: Moscow-City, where most of the gray-market turnover happens
- Recent seizures: $10 million in cash
Breaking:
Analyst reports reveal Russia’s cash-to-crypto exchange market has surged to billions of dollars, highlighting a growing demand for digital assets amid tightening financial restrictions. pic.twitter.com/MF5MUZVLru— Elvis Scouts (@ElvisScouts) October 5, 2025
Korolenko said cash-to-crypto transactions are the backbone of Russia’s gray-market, driving significant cryptocurrency flows to other markets. Local Telegram channels reported that authorities seized over $10 million in cash from a Moscow exchange last month, along with property confiscations linked to alleged illegal fund transfers abroad.
Risks and Legal Guidance for Investors
Moscow’s dominance in Russia’s gray-market crypto activity shows the scale and risks of these operations. Korolenko said exact figures are hard to verify because of the decentralized and opaque nature of these exchanges.
He advised investors and market participants to focus on legal channels, to be transparent and secure to avoid getting caught in government investigations. With billions moving daily, the gray-market is a reflection of high demand for crypto in Russia and the challenges regulators have in monitoring cross-border capital flows.
For now, the Russian cash-to-crypto market is still going strong, balancing big volumes with legal uncertainty. Analysts say unless stricter enforcement mechanisms are introduced, Moscow will remain the main cryptocurrency gateway for Russia.
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