The Hong Kong-based OTC firm said the region has become a safe haven not only for cryptocurrency millionaires but also for ordinary people.

As the ongoing international conflict between Russia and Ukraine unfolds, many citizens of both countries are turning to Hong Kong for the safety of cryptocurrencies.

Chainaanalysis, a New York-based blockchain forensics firm, cited Hong Kong-based over-the-counter (OTC) trading companies as saying that “many Russians and Ukrainians are coming to Hong Kong to use cryptocurrencies to move funds safely.” Hong Kong’s largest cryptocurrency venue Merton Lam, founder of CryptoHK, one of the foreign exchange companies, said in comments to Chainaanalysis that for high-net-worth individuals, cryptocurrencies have become “part of their investment portfolio.”

“They mainly want Bitcoin and Ethereum, although some have recently shown interest in smaller altcoins, which is interesting.” -- Merton Lam

Merton did not reveal details, but noted that “ordinary people” are also turning to Hong Kong to store funds in cryptocurrencies. The CryptoHK founder said many people are interested in using cryptocurrencies “to move some of their wealth out of local currencies and banking systems, especially in countries with unstable economies or strict capital controls.”

In early September 2023, the Central Bank of Russia extended foreign currency cash withdrawal restrictions for another six months until March 9, 2024. This means that those who opened a bank account or made a deposit in U.S. dollars (or euros) before March 9, 2022, can withdraw up to $10,000. The regulator claimed that the move was "due to sanctions imposed on Russia that prohibit Russian financial institutions from purchasing cash from Western countries".

Ukraine's central bank eased some restrictions on retail foreign currency purchases in August 2023, but key restrictions remain in place. Starting August 29, Ukrainians can sell non-cash foreign currency to retail customers without confirming the reason or requirement for the transaction. However, the monthly limit for one bank is set at the equivalent of 50,000 hryvnia (approximately $1,367). Ukrainians can also purchase non-cash foreign currency up to 200,000 Ukrainian hryvnias (approximately $5,470), but only if they subsequently make a deposit of at least three months' worth. #香港 #俄罗斯