Russia To Severely Restrict Cryptocurrency Trading

Overview of the Proposed Changes

Russia has set July 1, 2027, as the cutoff for direct peer-to-peer cryptocurrency trading. The Bank of Russia has clarified that Article 30 of Federal Law No. 282-FZ permits direct transactions between individuals only until the July 2027 deadline. Under the regulator’s explanation, residents must subsequently transact through, or directly with, authorized providers, including licensed brokers and registered cryptocurrency exchange operators.

Implications for Cryptocurrency Trading in Russia

The proposed changes will significantly impact cryptocurrency trading in Russia. Residents who currently buy or sell cryptocurrency directly with another person will have to cease this practice by June 30, 2027. The central bank’s guidance sets June 30, 2027, as the final day for that trading route.

Licensed Providers and Registered Exchanges

The regulator distinguishes between brokers holding a Bank of Russia license and cryptocurrency exchange organizations entered in its official register. Its website provides registers and a financial-market participant checking service through which users can review a provider’s status. Registered firms must follow transaction and recordkeeping requirements immediately. Institutions admitted through the transitional process have until Sept. 1, 2027, to meet the remaining operational requirements.

Restrictions on Transfers

The central bank’s October guidance addresses whether individuals can transfer cryptocurrency from a regulated digital account to a noncustodial wallet belonging to the same person. Citing part 9 of Article 31, the regulator says such transfers are not permitted. The restriction concerns withdrawals from the regulated account into a wallet where the individual controls the private keys.

Conclusion

The proposed changes by the Bank of Russia will centralize cryptocurrency trading in Russia and reduce the risk of illicit activities. Residents must use authorized intermediaries, and transactions must be conducted through licensed brokers and registered cryptocurrency exchange operators. The move aims to create a more regulated and secure cryptocurrency market in Russia.