Russia to Ban Direct Cryptocurrency Transactions Between Individuals from July 1, 2027
The Central Bank of Russia has clarified that starting from July 1, 2027, direct cryptocurrency transactions between individuals will be prohibited. Residents must conduct transactions through licensed intermediaries registered with the Central Bank.
The relevant rules stem from Federal Law No. 282-FZ, signed by President Putin in August 2026, which will take effect on September 1, 2026; the law sets a transition period until July 1, 2027, during which market participants must complete licensing applications and compliance.
The Central Bank's FAQ indicates that individuals are not allowed to transfer cryptocurrencies from their digital accounts to their own non-custodial wallets; transfers between individuals using licensed digital custody addresses are also prohibited, even for settlement transactions.
Non-qualified investors are limited to purchasing up to 300,000 rubles (approximately $3,600) worth of cryptocurrency per year through a single intermediary, initially restricted to Bitcoin, Ethereum, and USDT; qualified investors have no upper limit but must pass a test.
The use of cryptocurrency as a means of payment domestically remains prohibited, while cross-border settlements are unrestricted; the Central Bank has established a registry of authorized operators, including institutions like Sberbank and Vnesheconombank.
This framework requires that trading, custody, and record-keeping all occur within a regulated system, and banks must refuse transfers to unauthorized cryptocurrency service providers.
Market mechanism: Regulation will force funds and transaction flows into licensed intermediaries and state bank systems, with event-driven compliance platforms taking on existing transactions, benefiting licensed financial institutions while putting pressure on non-custodial wallet holders and individuals relying on P2P channels.
Source: Public Information
ABAB AI Insight
In 2026, Russia passed Law No. 282-FZ, bringing cryptocurrency transactions under a regulatory framework similar to that of securities, led by the Central Bank for licensing and intermediary systems; domestic payments have been prohibited while cross-border settlements are retained, creating a "closed domestic, usable externally" pathway.
In terms of capital pathways, trading and custody resources are concentrated in licensed intermediaries and state banks (such as Sberbank and Vnesheconombank), with annual purchase limits and mandatory intermediary requirements transferring personal funds from non-custodial channels to monitored accounts; the motivation is to control capital flows and avoid sanctions-related pathways while retaining cross-border settlement functionality.
Comparing to China's strict restrictions on cryptocurrency trading and India's regulatory attempts on non-custodial wallets, as well as some European countries' mandatory requirements for custody services; Russia is currently transitioning from a gray P2P market to complete intermediation, with non-custodial exit channels now closed.
Structurally, this represents regulatory change and capital concentration: through legal enforcement, control over crypto assets is shifted from personal private keys to licensed institutions, with mechanisms in place to block non-custodial transfers and direct settlements between individuals, ensuring asset liquidity and ownership records fully enter a system that can be frozen and audited, thus altering pricing power and holding structures.
ABAB News · Cognitive Laws
Whoever holds custody holds control
Prohibiting exit equals prohibiting holding
When intermediation is complete, non-custodial becomes invalid