New EU sanctions will reduce the demand for cryptocurrencies from active traders from Russia – expert

The new EU sanctions will reduce the demand of active Russian traders for cryptocurrencies and services of centralized crypto exchanges, Alexey Kornev, an expert of the ACRA corporate ratings group, shared his opinion.

The next package of EU sanctions against Russia introduces a complete ban on servicing crypto assets of citizens and residents of the Russian Federation. At the same time, the statement of the European Commission explains that the new sanctions tighten existing restrictions on crypto assets. Now all crypto assets of Russians and residents of the Russian Federation, regardless of their size, are banned.

“The new strictures are likely to significantly restrict access and reduce the attractiveness of using the services of centralized exchanges. People who have actively traded on exchanges will suffer the most, since there are no such opportunities on decentralized exchanges now. Those who simply used the exchange’s wallets to store their assets are likely to transfer them to their own wallets, which will not change the global picture,” the expert said.

Thus, we can expect a reduction in the number of active traders and market makers from Russia, as well as a decrease in the attractiveness of cryptocurrency for Russians in general.