Russia’s central bank will introduce significant restrictions on cryptocurrency trading starting next year, prohibiting direct peer-to-peer (P2P) transactions between individuals outside of authorized intermediaries.
New limitations on direct crypto exchanges
The Bank of Russia stated that individuals will no longer be able to swap crypto assets directly with each other, and must instead use approved platforms. The updated guidance, published on Monday, marked a considerable shift in the country’s approach to regulating digital assets.
Under these new rules, peer-to-peer crypto transactions will remain allowed only until July 1, 2027, after which all direct trades between individuals must pass through state-sanctioned intermediaries. The policy is part of Russia’s ongoing efforts to bring its cryptocurrency ecosystem under stricter regulatory oversight.
“Individuals may only conduct operations through registered exchange operators and custodians,” the Bank of Russia clarified in its latest statement.
In addition, the central bank clarified that individuals are prohibited from transferring crypto assets from digital accounts to their own non-custodial, or self-custodial, wallets. Non-custodial wallets allow users to control their own private keys, traditionally considered a core principle of decentralized finance.
Mini dictionary: Non-custodial wallets are digital wallets in which users own and control their private keys, allowing them to manage their assets independently without relying on third parties, unlike custodial wallets where an external provider holds the keys and manages security.
Sberbank joins list of authorized digital asset providers
Coinciding with the policy update, the Bank of Russia authorized Sberbank, the country’s largest financial institution, to offer crypto exchange services. Sberbank had already received permission to act as a digital asset custodian earlier this year, expanding its presence in Russia’s regulated crypto market.
Sberbank, established in 1841, plays a dominant role in Russia’s banking sector and has increasingly invested in blockchain and digital asset initiatives.
The decision to approve Sberbank as a crypto exchange operator follows broader reforms implemented on September 1. The new Russian rules brought exchange operators and digital asset custodians under central bank supervision, formalizing the structure of the market and clarifying the legal status of such businesses.
Industry reaction and enforcement challenges
Despite tighter control, Russian authorities continue to prohibit the use of cryptocurrencies for payments involving goods and services. The evolving legal landscape may challenge users accustomed to conducting transactions without intermediaries or restrictions.
Industry leaders have questioned the effectiveness and enforceability of these new limits. Jan3 CEO Samson Mow pointed out that P2P trading is generally more resilient to government crackdowns compared to centralized exchanges. SatoshiLabs executive Stepan Uherik has argued that restricting wallet applications could prove difficult, as hardware and standalone desktop wallets would remain operational.
Some executives regarded wallet restrictions as unlikely to fully prevent users from accessing their assets, emphasizing that alternative tools might persist despite regulatory measures.
Looking ahead, Russian authorities appear poised to continue measures aimed at tightening control over the domestic crypto market while allowing a narrow scope of regulated activity via established financial institutions.
