Russia has banned direct peer-to-peer (P2P) cryptocurrency trading, as well as retail transfers to self-custody wallets. Bank of Russia announced the update to the comprehensive crypto regulations signed into law by President Vladimir Putin in August.
Russia restricts P2P trading and crypto self-custody
Following the bans, crypto traders now have a grace period until July 1, 2027. Thereafter, the central bank will prohibit P2P trading in its entirety, replacing it with trading through state-licensed intermediaries.
The second part of the guidelines prohibits individuals from moving their cryptocurrencies out of regulated wallets and into non-custodial or self-custodial wallets. These include hardware wallets such as Ledger and Trezor, and software wallets such as Trust Wallet and MetaMask.
The state-licensed intermediaries or regulated custodians in this context include Russia’s largest state-owned commercial bank, Sberbank, and VTB. The nation’s central bank and primary crypto regulator recently authorized both entities to offer crypto custodial and exchange services.
Limits, exceptions and permitted cryptocurrencies
Notably, the crypto regulations that went live on September 1 mandated a mandatory crypto risk knowledge test before trading legally.
Under that law, investors are split into two:
- Non-qualified investors: their annual crypto purchase is limited to 300,000 rubles (roughly $3,840). They can only purchase Bitcoin (BTC), Ethereum (ETH), and Tether (USDT), which the Bank of Russia considers highly liquid digital assets.
- Qualified investors: they include institutions and professionals, and they enjoy unlimited crypto purchasing power as long as they are certified.
Additionally, using cryptocurrencies as a form of legal tender is illegal. Mined cryptocurrencies can be circulated as long as they originate from licensed domestic miners.
On a foreign scale, Russians can trade and hold cryptocurrencies abroad if they use foreign bank accounts and make the necessary tax reports.
And while crypto use remains highly controlled locally, Russia has freed up the use of cryptocurrencies for cross-border import-export transactions to bypass international sanctions.
Community reaction
Most social media comments criticized the stringent and tight regulations, saying they go against the basic decentralization and permissionless ethos of blockchain and cryptocurrencies.
Was this writing helpful?
Story Ends Here
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
Read the Next News
