In Russia, the regulatory landscape for cryptocurrency has become increasingly complex, especially in light of international sanctions imposed after the country invaded Ukraine in 2022. Following the takedown of the heavily sanctioned crypto exchange Garantex in March 2023, five alternative exchanges emerged to fill the gap. According to crypto analytics firm Elliptic, these exchanges—Bitpapa, ABCeX, Exmo, Rapira, and Aifory Pro—are reportedly enabling sanctioned Russian entities to conduct transactions without passing through traditional financial systems. The actions of these exchanges illustrate a growing trend towards increased crypto adoption in Russia, despite the ongoing scrutiny from regulatory bodies worldwide. Elliptic's February 2024 report highlights that these exchanges are facilitating significant transactions involving the Russian ruble and cryptocurrencies, effectively allowing users to convert digital assets into fiat currencies. Notably, Bitpapa is already sanctioned by the U.S. Treasury's Office of Foreign Assets Control (OFAC), as it is believed to assist sanctioned entities in evading restrictions. Elliptic estimates that around 9.7% of Bitpapa’s outgoing crypto funds are linked to OFAC-sanctioned targets, revealing the challenges regulators face in controlling the flow of crypto. ABCeX has drawn attention for continuing to operate from the same Moscow location as Garantex and processing substantial amounts of cryptocurrency transactions. Exmo's situation is particularly controversial, as the exchange claims it exited the Russian market; however, it has continued to engage in direct transactions with sanctioned entities. This contradiction raises questions about the effectiveness of claims made by exchanges regarding their compliance with regulations. The need for clearer regulations has become increasingly urgent as the European Union aims to pass new sanctions targeting all crypto transactions with Russia. The situation highlights not only the difficulties of implementing effective sanctions but also the potential for cryptocurrencies to undermine traditional financial systems. With Russian firms and entities looking for ways to circumvent these restrictions, the role of these exchanges poses significant implications for international relations and economic stability in the region.