Examining the Effects of Regulatory Measures on the Behaviour of Cryptocurrency Market : a Case Study on the Impact of Binance Ban as a Component of AntiRussian Sanctions on the Local Crypto Community

Abstract

The emergence of cryptocurrency, introduced in 2008 by Satoshi Nakamoto as an alternative to traditional financial systems, has led to a rapid market expansion. This growth has seen the creation of numerous alternative cryptocurrencies and cryptocurrency exchanges, fostering economic opportunities and wealth accumulation for traders. However, amidst this flourishing market, regulatory and taxation frameworks still need to be settled due to a need for more consensus on the nature of cryptocurrencies and their appropriate treatment by governments. One standout case amidst the cryptocurrency landscape is that of Binance, the world's largest cryptocurrency exchange. Despite its legal standing, Binance has faced numerous regulatory challenges from governments worldwide, the most recent being accusations of non-compliance with anti-Russian sanctions, resulting in its expulsion from the Russian cryptocurrency market. This research investigates how Russian crypto traders, coping with severe blanket sanctions stemming from the Russian-Ukrainian conflict, have adapted to new socioeconomic conditions. It seeks to uncover the mechanisms that facilitate their continuation of trading activities despite these challenges. By delving into these dynamics, the study sheds light on the relationship between regulatory frameworks, and societal adaptation in the face of economic and political pressures. This research is another attempt to understand the contemporary socioeconomic challenges and resilience mechanisms within an increasingly interconnected global landscape. By exploring these themes, it seeks to provide insights into the complexities of navigating cryptocurrency markets amidst regulatory uncertainties and geopolitical upheavals.