(MENAFN) Russia has surpassed its European counterparts to become the continent’s largest cryptocurrency market in terms of transaction volume, according to data from the blockchain analytics company Chainalysis.

In a report published on Thursday, Chainalysis revealed that between July 2024 and June 2025, Russia handled $376 billion in crypto transactions.

This marks a significant increase from $256.5 billion recorded the previous year, and it exceeds the UK’s $273 billion.

Both Russia and the UK are recognized as Europe’s dominant crypto markets. Following them are Germany with $219 billion, Ukraine at $206.3 billion, and France with $180.1 billion in crypto transaction volumes.

The analytics firm attributed Russia’s growth to a notable rise in institutional transfers and a swift embrace of decentralized finance (DeFi). Transactions exceeding $10 million grew by 86% year-over-year, nearly twice the 44% growth seen across Europe.

Additionally, retail cryptocurrency activity in Russia also outpaced the average growth rate in the region. DeFi operations, which involve using blockchain applications for activities such as trading, lending, and earning interest, more than tripled compared to 2023.

Chainalysis also highlighted the role of Russia’s A7A5 ruble-denominated stablecoin in boosting the country’s position. This digital currency has become a “key vehicle for cross-border payments.”

Launched in February, the stablecoin became the first in Russia to be designated as a digital financial asset (DFA) last month.

This status grants importers and exporters the legal authority to use it for international settlements.

While Russia has maintained a cautious yet evolving approach toward cryptocurrencies, digital assets are not legally recognized as currency within the country.

Legislation classifies these digital assets as taxable property and prohibits their domestic use, even though they are permitted for cross-border transactions.

Meanwhile, the central bank has developed an experimental framework that allows qualified investors to engage in digital asset trading.

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