Russians try to exchange cryptocurrency for cash after EU sanctions

Since March 9, 2022, the occupying power has banned its citizens from unlimited cash withdrawals. The maximum was $ 10 thousand. This option was possible only if the money was deposited into the account before March 9, 2022. The restriction is set to expire on March 9, 2023, but Russian citizens have no guarantee that the central bank will lift the limits after that date.

Many Russian banks are disconnected from the SWIFT international interbank payment system, so Russians cannot transfer their currency abroad. As an «alternative», banks offer users the exchange of dollars and euros for rubles. However, the exchange rate leaves much to be desired, and holders of foreign currency in Russia risk being sanctioned by the National Settlement Center. So for many, stablecoins have become the way out of this situation. Among them is Tether (USDT).

Tether is pegged to the US dollar at a 1:1 ratio. It can be purchased, transferred abroad without any restrictions, and exchanged for physical fiat. At the time of writing, the value of one USDT on the Binance P2P platform is 64 Russian rubles.

At the end of September 2022, the EU banned the operation of cryptocurrency wallets linked to Russia. However, few crypto services and exchanges are actually ready to impose restrictions on Russians. Despite the EU’s attempts to restrict the occupiers' access to cryptocurrencies, stablecoins remain a real substitute for money for many. As a result, exchange offices have appeared on the streets of Russian cities, where you can conduct transactions with digital assets. However, cooperation with street «exchangers,» even if they offer a better rate than anywhere else, is not a good idea. Cryptocurrency experts note the high probability that Russians will simply get fooled and lose money.

Nevertheless, many analysts do not hesitate to help Russians find safe options for monetizing sanctioned cryptocurrencies. Crypto-enthusiasts loyal to the occupier direct Russians to the P2P platforms of the largest cryptocurrency exchanges, as they are obliged to ensure the security of transactions and can help criminals circumvent sanctions. We hope that this trend will not continue and that crypto gurus will focus on helping Ukraine fight the terrorist state. Let’s say, as Ethereum co-founder Vitalik Buterin did in his time.