Russian entities use Kyrgyz crypto platforms to evade sanctions, TRM Labs report reveals

btccSquare News: According to a report by blockchain intelligence company TRM Labs, Russian entities have transformed Kyrgyzstan's cryptocurrency ecosystem into a sanctions evasion center. As Moscow seeks alternatives to traditional financial channels, the transaction volume of Kyrgyz virtual asset service providers has surged from $59 million in 2022 to $4.2 billion in the first seven months of 2024—an increase of 7000%. The Garantex exchange, banned in Russia, appears to have been renamed Grinex and is facilitating the exchange of rubles and cryptocurrencies through Russia-backed stablecoins like A7A5. These platforms now dominate Kyrgyzstan's crypto industry, which barely existed before Western sanctions intensified after the 2022 Ukraine war.