Dubai-based crypto exchange becomes a safe haven for Russian traders
Dubai-based exchange Coinsfera is attracting traders from countries under sanctions, including Russia and Iran, Bloomberg reported.
Coinsfera is a crypto over-the-counter (OTC) desk that allows users to make large trades under the radar of the public market and turn them into cash in Dubai. The process takes minutes and only requires an identity document and a couple of questions compared to other crypto exchanges that use the KYC process.
Neutral trading place in Dubai
Since Putin’s invasion of Ukraine in February, many Russians have fled to the United Arab Emirates, which has remained neutral and has not imposed any sanctions on the country or individuals, while most crypto trading platforms such as Binance and Coinbase have blocked or restricted accounts linked to Russia. . Meanwhile, Russian users have been using Coinsfera for “large transactions,” according to Bloomberg’s sources.
The exchange, with offices in Dubai, Istanbul, London and Kosovo, was launched in 2015 and has attracted users from countries sanctioned by the West long before the Russian-Ukrainian conflict.
Coinsfera describes itself as a “money point” where customers “are not limited by trading restrictions.”
“Any amount of money can be obtained with ease, at the lowest possible cost, and in the shortest possible time. Users can easily sell or buy bitcoin in Dubai with a valid ID from any nation,” the company’s official announcement said, raising concerns for the nature of the activities these transactions may sponsor.
A UAE official insisted that the country was working tirelessly to “combat the cross-border threats of illegal activity in the crypto industry and maintain the integrity of the financial system” when asked about the consequences of such transactions.
Reinforces a crypto-friendly image
Dubai has recently emerged as a crypto hub, welcoming more and more crypto companies to the city.
Binance, the largest crypto exchange, has recently moved its headquarters to Dubai, becoming “the company’s headquarters according to a common interpretation.”
Earlier this year, FTX, Binance’s biggest rival, received approval to operate as the first crypto exchange in the city.
“The security and credibility that Dubai assures in its compliance with these obligations allows FTX to confidently pursue its overall strategy of scaling towards becoming the first virtual asset service provider to enter global markets in a fully regulated manner,” said a FTX representative on time.
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