Moscow's hidden crypto markets bloom with $10M daily trading volume

16 Sep, 2018
by Fifi Arisandi
News
Moscow's hidden crypto markets bloom with $10M daily trading volume

A Russian journalist, Alena Suharevskaia recently explored the hidden offline crypto markets in the country's capital and published her findings. 

A Russian journalist, Alena Suharevskaia posted a piece of publication following her exploration of the hidden offline crypto markets in the country's capital. In Moscow's business center, Suharevskaia found several cryptocurrency exchanges, one of them, called Berkut or "Corporation Golden Eagle" has an average daily trading volume of over 100 BTC or almost $650,000 in current rate. 

Transcations here are done pseudonymously, where clients come to the office bringing cash and documents proving its legality. After the exchange counting the money, they need to wait for another 30 minutes for the transaction to be confirmed on the blockchain. 

The exchange usually does a quick check on the client's background, while the clients can enjoy the exchange's luxury hall with large TV sets and game pad controllers.

Berkut's CEO, Denis Polokhin ensure the confidentiality and safety of the transactions as his exchange doesn't keep the clients' data and deals are only closed after they confirmed their receipt on their wallet. He claimed in their best days, the daily trading volume can reach $2 million. 

Another crypto exchange located in Moscow's business center is the International Crypto Center, which is on the 1st floor of the building. The exchange is a subsidiary of an Estonian company, Aridika Asset Management, thus the status of the operation is fully legal, according to the CEO, Roman Krayniak. 

Krayniak said there are several groups of buyers, with the majority are those who buy tokens to fund their ICO projects. The second most buyers coming from the Chinese traders who own clothing shops in Moscow, whereas the remaining groups are tricky resellers and net-traders. 

Suharevskaia also reported that the Chinese clothing traders prefer to use Bitcoin to safely transfer money, rather than using the regular bank transfers to avoid the governments' censorship. These traders supply the trading centers in different locations, such as Moscow City, Gardener, and South Gates. 

The crypto exchanges that located in Gardener claimed to have $10 million daily trading value, which is equal to the total official financial transaction of Moscow. Although, the Russian Central Bank head of financial monitoring department, Yurii Polupanov claimed the amount to be slightly lower, with around $8.6 million, as reported by Bitsonline

It seems like the use of crypto keeps on blooming in the country, despite the government's opinion that the country is not ready for cryptocurrency yet, as previously reported by Chepicap.

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Read more about: Bitcoin (BTC)

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