Paxful finds its way into Russia
A press release published by Paxful indicates that its number of users in Russia increased by 365% between May 2019 and May 2020. The traffic to the exchange site in this geographical area would also have increased, with a margin of 350% compared to the previous year.
The company would have invested enormous financial means on the marketing plan, to challenge the dominance exerted on this territory by LocalBitcoins, leader in Bitcoin (BTC) exchanges between individuals.
“LocalBitcoins’ largest revenue market is Russia, so Paxful made a strategic growth decision to go to Russia as well,” said Anton Kozlov, Russian Market Manager at Paxful.
However, despite a very good track record of activities, Paxful still has a long way to go. According to data from Useful Tulips, LocalBitcoins closed this month with a trading volume of around $ 33 million. For its part, Paxful would have reached only $ 419,000, or 1.2% of the turnover generated by its main competitor.
Evolution of transaction volumes recorded by LocalBitcoins and Paxful – Source: Useful Tulips
👉 Also Read: Faced With Strong Demand, Paxful Unblocks Bitcoin-Gold Exchanges
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Russians trust Bitcoin, Paxful says
The economic crisis caused by the Covid-19 pandemic has questioned Russians’ certainties about traditional banking systems.
They were quickly confronted with the legal uncertainty surrounding the status of cryptocurrencies in their country at this time.
But that didn’t hurt their morale, as Paxful’s revenue in Q2 2020 increased by 34% in March, 41% in April and 50% in May, for a monthly average of 42%. As can be seen, the growth rate is higher from month to month during this period. This trend continued in the following months and a record growth in June.
Bitcoin trading is booming, Kozlov said, despite turmoil over Russian law.
“Aside from the crisis, Russia has always had a monolithic banking system dominated by a few players, and the feeling we have is that the Russians are increasingly looking to find alternative ways to increase their profits and participate in the financial markets. . Bitcoin in the P2P context gives them a lot more freedom to do so – and our data proves it, ”he said.
👉 Also discover: In Russia, illegal crypto trading could cost up to 7 years in prison
Bitcoin obtains legal status in Russia
Recently, a legal clarification has favored hodlers and paved the way for even more flourishing business for bitcoin traders in Russia.
On July 24, after several months of negotiations, the Duma adopted the new draft ” financial assets law “. Although it recognizes cryptocurrencies as an “aggregate of electronic data that can be accepted as a means of payment”, it prohibits their use for the purchase of goods and services.
However, we can hope that this law will evolve in the medium term in favor of bitcoin, as Russia becomes more and more familiar with the associated technologies.
👉 To read on this subject: Russia: the blockchain vote will be widely proposed for the legislative elections
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About the Author : Junie Maffock
Driven by curiosity, I discovered a passion for cryptocurrencies and Blockchain technology. The crypto enthusiast that I am likes to take a close look at the crypto world.
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