Russians turn to crypto to evade restrictions | Invezz

Bitcoin (BTC/USD) is trading just above the $20,000 mark after another selloff. The latest decline follows a broader market reaction to Federal Reserve Chairman Jerome Powell’s monetary policy remarks at the Jackson Hole economic forum on Friday. Although anticipated, Powell’s confirmation at the symposium that the central bank would stick to its hawkish approach to inflation, plunged risk sentiment and saw Wall Street and crypto prices fall sharply.

With BTC at around $20,250 and as the markets continue to digest the Fed Chairman’s remarks, it remains to be seen if Bitcoin can hold onto the psychological support zone. If that breaks, more pain could imply a retest of mid-June price levels.

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Russians Turn to Crypto Amid Currency Restrictions

Even as the crypto struggles in the bear market, adoption in Russia is gaining momentum. This is an observation from the perspective of more people who are turning to cryptocurrencies to try to evade biting restrictions on exchange. Indeed, a recent survey found that almost a third of respondents said they plan to buy crypto in the next six months.

Marcus Sotiriou, analyst at a UK-based digital asset company Global blockclaims that the adoption of crypto in Russia is largely catalyzed by currency restrictions imposed by Russian authorities.

The restrictions, applied since early 2022 following Vladmir Putin’s invasion of Ukraine that drew Western sanctions, hurt the rouble. And it is these restrictions that are driving more people into crypto, he added in comments shared with CoinJournal by email.

This is “although there is currently no legal way to buy or sell cryptocurrencies in Russiahe noted, commenting on how difficult it is for those looking to use crypto to circumvent the restrictions.

However, while this is the case for many users, the platforms that offer over-the-counter (OTC) crypto exchange services are reporderly offering an easy way to buy crypto with local currency.

The assets are then liquidated against foreign currencies in countries like the United Arab Emirates (UAE) and Georgia.