The Bank of Russia has announced a ban on peer-to-peer Bitcoin trading starting July 1, 2027, requiring all transactions to go through licensed brokers.
New Regulations on Crypto Trading in Russia
The Bank of Russia has announced that peer-to-peer (P2P) trading of cryptocurrencies, including Bitcoin, will be illegal starting July 1, 2027. This decision was confirmed in an updated FAQ published on October 12, which outlines the legal framework established by Federal Law No. 282-FZ, signed by President Vladimir Putin in August.
Under the new regulations, individuals will no longer be permitted to conduct direct crypto transactions with one another without a licensed intermediary. From the specified date, all crypto trades must go through authorized brokers or registered crypto exchanges. This marks a significant shift in the regulatory landscape for digital currencies in Russia.
Restrictions on Crypto Transfers
In addition to banning P2P trades, the central bank has prohibited individuals from transferring cryptocurrencies to their own non-custodial wallets or sending them to other users through digital depository addresses. This means that all crypto transactions will have to be facilitated by registered entities, effectively eliminating the ability for individuals to trade freely among themselves.
Moreover, lending crypto will also be restricted to licensed brokers and other approved organizations, further tightening the grip on individual trading activities.
Impact on the Crypto Market
The impending regulations come at a time when peer-to-peer trading has become a popular method for Russians to acquire stablecoins, particularly since Binance divested its Russian operations in 2023. The new rules will disrupt this practice, as individuals will be unable to exchange rubles for cryptocurrencies directly.
As part of the regulatory changes, Russian banks will be required to refuse transactions involving foreign crypto platforms starting in 2027, and they will not accept rubles withdrawn from these platforms. This will further isolate the Russian crypto market from international trading avenues.
Future Developments
Despite these restrictions, Sberbank, Russia’s largest bank, has recently joined the central bank's register of authorized crypto exchange organizations and plans to launch its initial crypto products on December 1. Other banks, such as VTB and T-Invest Lab, are also included in this registry, indicating a shift towards more regulated crypto services.
Under the current laws, non-qualified investors can invest up to 300,000 rubles (approximately $3,600) in cryptocurrencies annually, while qualified investors face no such limits. However, the use of cryptocurrencies for domestic purchases remains prohibited, although they can be utilized for international trade settlements, a move that some officials have described as a way to circumvent sanctions.
