Russian-language no-KYC crypto exchanges continue to reappear despite international crackdowns, often using new names after earlier platforms are shut down. A report from Chainalysis found that more such platforms were appearing, although the total value flowing through them was falling.
The platforms mainly serve Russian users and can connect to sanctioned Russian banks. Many also have no clear company registration or stated jurisdiction, making it harder for authorities to identify who operates them.
Crackdowns are disrupting the market, not removing it
Chainalysis said more than 100 no-KYC Russian exchanges were active in 2024, with combined inflows exceeding 1.5 billion rubles. The number of platforms increased as smaller services and rebranded exchanges filled gaps left by enforcement actions.
That does not mean the crackdowns had no effect. Chainalysis found that overall inflows were declining, suggesting sanctions and law-enforcement operations were making it harder for these services to maintain their previous activity.
The problem is that shutting down one platform can create room for another to take its place. No-KYC services are relatively easy to recreate, especially when operators can reuse websites, infrastructure, or connections to other parts of the crypto economy.
This makes enforcement more complicated than simply blocking a domain. Authorities have to identify the people and financial networks behind the services and follow where the money moves.
Russia has also tightened restrictions around crypto activity. Authorities have blocked access to BestChange, a major crypto exchange-rate and OTC aggregator. The country has also introduced rules covering crypto mining and advertising.
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Crypto regulation is creating new risks
Russian miners have raised another concern. They are expressing concerns about a government registry that collects information including crypto wallet addresses.
The concern is not only about privacy. A leak containing wallet information could make it easier to identify crypto holders and potentially expose them to theft or other attacks. Russian lawmaker Anton Gorelkin warned that such a breach could become a serious security problem.
Illegal mining is creating a separate cost. In 2024 alone, unauthorized crypto mining reportedly caused more than 1.3 billion rubles in losses for Rosseti. The company identified 130 cases of unauthorized electricity use and more than 40 criminal investigations.
The developments show that Russia’s crypto crackdown is affecting several parts of the market at once, from exchanges and advertising to mining and user data.
But newer Chainalysis research shows that the underground market has adapted. Russian-linked crypto networks continued to develop after major enforcement actions, with the A7A5 stablecoin and related services becoming important parts of the country’s sanctions-evasion infrastructure.
That suggests enforcement can reduce activity without eliminating the demand for alternative financial channels. As long as users and businesses have reasons to bypass restrictions, new services can continue to appear.
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