A report from TRM Labs reveals that Kyrgyzstan is being used by Russian entities to evade international sanctions through its crypto industry, which was nearly nonexistent before Russia's Ukraine invasion in 2022. The research indicates that nearly all of Kyrgyzstan's cryptocurrency activity stems from Russian demand rather than domestic usage. Platforms in Kyrgyzstan, such as Grinex, have links to the Russian exchange Garantex, which was shut down in March 2025 after significant regulatory scrutiny. The report notes that many Kyrgyz exchanges function similarly to shell companies with identical addresses and registration details. TRM Labs highlights that sanctioned Russian groups, including paramilitary organizations, are using these platforms to access global financial systems, compounded by Kyrgyzstan's weak governance and regulatory frameworks that facilitate illicit financial flows. Experts stress that without stronger transparency measures and enforcement, Kyrgyzstan remains vulnerable to exploitation by corrupt actors and sanctioned entities.

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