TRM Labs: Russian entities are using Kyrgyzstan's cryptocurrency platform to evade sanctions.

According to BlockBeats news on July 27, as reported by Decrypt, a report released by blockchain intelligence company TRM Labs indicates that Russian entities are using Kyrgyzstan's cryptocurrency platform to evade sanctions. Russian-related crypto trading activities account for almost the entirety of Kyrgyzstan's crypto industry, which "barely existed" before the Russia-Ukraine war in 2022. On-chain analysis shows that the closed Russian trading platform Garantex has likely been renamed Grinex and is conducting large-scale ruble-to-crypto transactions using Russian-backed stablecoins (such as A7A5). The trading volume of Kyrgyzstan's virtual asset service providers reached $59 million by the end of 2022 and skyrocketed to $4.2 billion in the first seven months of 2024. These platforms have become key channels for Russian entities to counter sanctions and maintain access to the global financial system.