Recent reports have detected an alarming increase in the number of fraudulent crypto exchanges targeting Russians and Russian-speaking crypto traders. Security firm InformZashitae stated that these crypto transactions had “grown by one and a half times” within weeks and noted there was relentless growth in these fraudulent activities. That same growth was three times more marked compared to last year, according to a recent figure from digital consultancy Positive Technologies. Additionally, fake crypto exchange aggregators have started to spread. This emergence of illegitimate exchanges is believed to be connected to an increase in the use of crypto-fiat transactions in Russia as citizens seek for ways to bypass economic sanctions.

In order to address the concerns of breaking the law in the pursuit of engaging in cryptocurrency activities, Oleg Ogienko, head of government relations at the crypto mining firm BitRiver, noted that scammers become active in any market that undergoes sudden growth, like cryptocurrencies. The only way to put an end to this is with the legalization of crypto activities in the country, with alternative solutions like the launch of a government-run crypto exchange being considered. A regulatory bill on these activities was submitted to the Russian Assembly in November 2020, but with disagreement among political parties mostly the Central Bank, this has yet to be officially approved and is subject to further revision this month.



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