Industry experts warn that Russia could begin mass blocking of unregistered crypto exchanges as early as this summer. The move would use new AI tools and target platforms seen as unfriendly by Moscow. This comes amid efforts to tighten regulations on cryptocurrency trading.
Russia's internet regulator, Roskomnadzor, is expected to start blocking access to major overseas cryptocurrency exchanges that are not registered in the country, potentially as soon as this summer, according to experts in the sector.
Nikita Zuborev, a senior analyst at the Russian crypto exchange Bestchange, told media outlet RBC: “[The industry] expects Roskomnadzor may begin the mass blocking of the websites of crypto exchanges that are not registered in Russia as early as this summer.” This anticipation aligns with upcoming legislation in the State Duma's spring session, which aims to prohibit transactions on unregistered trading platforms.
The blocks would build on Roskomnadzor's recent actions against foreign services, including restrictions on chat apps like Telegram and WhatsApp, as well as efforts to limit virtual private networks that help users bypass censorship. Experts predict the use of similar techniques employed to target Russian-language YouTube content and tools that circumvent blocks.
Roskomnadzor plans to invest $29 million this year in AI and machine learning tools to enhance its web censorship capabilities, which could extend to disrupting access to overseas exchanges, mining pools, and data services. The focus will likely be on platforms that comply with sanctions from the US, EU, and UK.
Ignat Likhunov, founder of legal firm Cartesius, stated: “It looks like the conditions for unfriendly foreign exchanges will worsen in Russia.” Meanwhile, lawyer Dmitry Machikhin noted that while access to many platforms would be restricted, enforcement would be challenging, pointing out that over a million Russians still trade on Binance despite its official exit from the country in 2023.
Russia's data protection laws require that personal information of citizens be stored on servers within the country, posing issues for international exchanges operating from Europe or the US, as highlighted by crypto analyst Viktor Pershikov. The Ministry of Finance recently reported that daily cryptocurrency transactions by Russians have reached $648 million, mostly occurring on unregistered domestic platforms or foreign exchanges.