According to the report published by the analysis and research company Chainalysis, Eastern Europe has become the most risky crypto region, especially due to the activities of Russia.
In cryptocurrency trading, Eastern Europe was the more risk zone than any other region, at 18%. According to the analysis, the reason for the high risk factor was illegal transactions. A significant portion of the region’s rate of high-risk activity was cited as the prevalence of exchanges that do not care or have authentication (KYC) information standards.
Eastern Europe in a Turbulent Crypto Era
Eastern Europe was the most risky region with 18 percent, while East Asia was the second with 15 percent. Sub-Saharan took the third place.
The effect of the war between Russia and Ukraine played an important role in the fact that Eastern Europe was the most risky. After the war, the United States and Europe began to impose sanctions against Russian oligarchs and other loyalists to Vladimir Putin’s government. As a result of these sanctions, Russians turned to cryptocurrencies for illegal and legal uses.
Russians and Ukrainians, who were afraid of economic difficulties due to the war, turned to cryptocurrencies as a reliable protection and investment tool. This intense use in Eastern Europe has also led to the emergence of crypto exchanges for fraudulent purposes.
Also, stablecoin usage in Russia was 42 percent in January but showed a significant increase to 67 percent in March. Since then, stablecoin usage has been on the rise. Part of the increase in stablecoin usage is due to the economic hardships Russians are experiencing.
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