A connection between the payment processor Advcash and Bingbon will help the cryptocurrency social trading exchange expand its services to Ukraine, Kazakhstan and Russia through a newly introduced fiat ramp.
Eastern European fiat support reflects regional crypto adoption
Outside of North America and Asia, Eastern Europe has one of the largest communities of cryptocurrency miners, developers, and traders. At one point, only Russia was lagging behind the US and China in terms of bitcoin mining hashrates.
A 2020 Chainanalysis report confirms this trend, highlighting that the world’s highest concentrations of cryptocurrency adoption in terms of value exchanged between July 2019 and June 2020 were centered in Ukraine and Russia. The same report highlighted that about 12% of total global transaction volume was based in Eastern Europe, making it a sizable target for exchanges and other crypto service providers.
But the fiat driveways for this geographic region are less compared to other jurisdictions, and one reason could be the highest convergence of global illegal crypto activity that is within its borders. Still, the de-dollarization in Russia and familiarity with alternative payment methods since the fall of the Soviet Union have prepared this population to accept cryptocurrencies, especially given the highly fragmented banking coverage in the former Soviet states.
To attract this emerging community and further expand its Russian market, Singapore-based Bingbon, a cryptocurrency spot and futures exchange, has partnered with Advcash to sell Russian rubles (RUB), Ukrainian hryvnia (UAH) and Kazakh tenge (KZT) to accept. The new fiat-to-crypto-to-fiat partnership will help Bingbon support multiple payment methods including Visa, Mastercard, MIR cards and ADV e-wallet transactions.
For Bingbon, the move will help social crypto exchanges compete with other entrenched players in the region like Binance and Huobi Global. For customers, it means easier getting in and out of their fiat currencies to buy Bitcoin, Ethereum, Litecoin, Bitcoin Cash, Ripple, Zcash and Tether (USDT) in the Bingbon ecosystem to access multiple products including social trading .
The timing corresponds to the miner migration
Bingbon’s decision to expand support to Eastern Europe coincides with a major migration of miners from China in search of affordable electricity and supportive government policies. Among them, Shenzhen-based Bit Mining began moving its first batch of mining units to Kazakhstan last month as the Chinese government stepped up crackdown on cryptocurrency miners. You are just one of the mining consortia eagerly searching for new frontiers with an abundance of cheap energy.
Kazakhstan has responded to the influx of operations and equipment with a new electricity surcharge for crypto miners. Meanwhile, the Ukrainian government is also turning to cryptocurrency to some extent after selecting an offer for a cryptocurrency mining operation next to a nuclear power plant.
While these Eastern European countries could cover mining more friendly thanks to affordable energy, governments are taking enforcement seriously. Ukraine is cracking down on illegal mining, evidenced by the seizure of nearly 5,000 mining units on July 10th that stole electricity from the grid. Meanwhile, Russia is drafting new laws to combat criminal use by helping the country legally seize cryptocurrencies acquired through illegal activities.
What do you think of the launch of crypto in Eastern Europe? Let us know in the comment section below.
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