Sales of hardware crypto wallets in Russia have surged, with M.Video reporting a 107% increase in Q2, driven by rising demand and new regulations.
Russia has experienced a remarkable increase in hardware crypto wallet sales, with M.Video reporting a 107% rise in units sold in Q2 compared to Q1. Additionally, Wildberries noted an 84% year-on-year demand growth in the first half of 2023, according to RIA Novosti.
M.Video highlighted a 92% increase in turnover for the category, with Ledger dominating the market at nearly 30% of total sales, followed by Trezor at about 20%. Other brands such as OneKey, Ellipal, SafePal, and Jade also contributed to the sales, though M.Video did not provide exact figures for the number of wallets sold.
Sales of self-custody devices surged by 60% in monetary terms between January and June, as reported by the combined entity of Wildberries & Russ. The average price of these wallets fell by 13%, settling at around 7,900 rubles, with customers increasingly opting for models featuring NFC modules and backup cards.
The trend for hardware wallets began earlier, with a significant spike in sales during March-April 2022, attributed to factors such as currency restrictions and sanctions. M.Video-Eldorado reported an eightfold increase in sales in Q1 of 2022 compared to the previous quarter, with Ozon also witnessing a tripling of sales in April 2022.
Despite the growth in sales, both M.Video and Wildberries have not linked the current dynamics to legislative changes. However, on August 4, President Vladimir Putin signed a law regulating the cryptocurrency market, set to take effect on September 1, 2026. This law introduces regulated intermediaries and digital depositories, allowing unqualified investors to buy liquid cryptocurrencies through a single intermediary, up to a limit of 300,000 rubles per year.
Following the law's introduction, discussions within the cryptocurrency community have raised questions about self-custody and the implications for withdrawing cryptocurrency from exchanges to cold wallets. Experts have indicated that while ownership of hardware wallets remains legal, new regulations will affect how transactions are conducted.
Vladimir Sobinsky, a legal expert in digital currencies, clarified that the law does not require registration of hardware wallets, and individuals can hold cryptocurrency without special actions if they do not engage in transactions. However, for transactions involving non-custodial addresses, new reporting requirements will be imposed on residents.
Concerns persist regarding the ability to withdraw cryptocurrency from Russian digital depositories to personal wallets, with Sobinsky noting that transfers to non-custodial wallets will be restricted to specific situations as defined by the law. A 48-hour cooling-off period will also be implemented for transferring digital assets worth over 100,000 rubles to non-custodial wallets. Furthermore, a transitional period until July 1, 2027, has been established for market participants to comply with the new regulations.
In a notable development, plans for a self-regulatory organization for digital currency exchange operators have been announced, with a founding congress set for September 1 in Moscow.
