Russia Exempts International Cryptocurrency Payments From Self-Custody Wallet Restrictions

Key Highlights

Table of Contents

Russia’s central bank excludes international cryptocurrency settlements from self-custody wallet limitations.
Vladimir Chistyukhin, First Deputy Governor, announced that non-custodial wallets stay accessible for overseas transactions.
Domestic transfers from regulated Russian digital accounts to personal wallets face new limitations.
Russian users can route eligible assets through regulated foreign custodial services to reach personal wallets.
Person-to-person cryptocurrency transactions continue under current rules through July 1, 2027.

The Bank of Russia has clarified that new limitations on self-custody cryptocurrency wallets will exclude international payment settlements. First Deputy Governor Vladimir Chistyukhin said this carve-out permits overseas transactions while the nation implements stricter oversight for domestic cryptocurrency activity.

International Settlements Maintain Non-Custodial Wallet Access

“Use of non-custodial wallets is permitted for international settlements,” Chistyukhin stated to reporters on October 29, as reported by TASS.

These wallet types enable holders to maintain control of their private keys independently of cryptocurrency exchanges or third-party custodians. His remarks came during a corporate governance forum hosted by Moscow Exchange on Thursday.

According to the regulations, users cannot move cryptocurrency directly from Russian regulated digital accounts into personal wallets. Chistyukhin explained that assets may travel to a regulated foreign custodial service, where account holders can then move them into self-custody wallets.

Tighter Controls Apply to Russian Domestic Transfers

Federal Law No. 282-FZ became operational on September 1, establishing oversight for licensed domestic cryptocurrency trading and custody operations. Meanwhile, South Korea is advancing cross-border crypto transfer reporting requirements for exchanges within its updated foreign exchange framework.

Russia caps standard retail participants at cryptocurrency acquisitions worth 300,000 rubles per year through each intermediary. These investors must complete eligibility verification before gaining access to approved digital assets. Qualified investors face distinct requirements.

Direct Transactions Between Individuals Get Grace Period

The Bank of Russia permits residents to maintain direct person-to-person cryptocurrency transactions through July 1, 2027. Beyond that deadline, residents will need to utilize authorized intermediaries for applicable transactions. The regulations do not forbid holding cryptocurrency already stored in personal wallets.

Wallet limitations have emerged in other jurisdictions as well. Recent wallet screening disputes involving Hyperliquid arose after reports indicated certain accounts received flags following transfers connected to HTX. Those situations involve distinct platform oversight measures.

Central Bank Expands Cryptocurrency Exchange Oversight

On October 29, the Bank of Russia designated the National Association of Securities Market Participants, identified as NAUFOR, as a self-regulatory authority for cryptocurrency exchanges and digital depositories. The central bank’s official registries show 23 exchange operators and eight depositories.

Registered entities must affiliate with a self-regulatory organization within 90 days. NAUFOR will establish standards and oversee adherence. The organization will additionally guide firms in fulfilling their new responsibilities. In other developments, Brazil’s Itaú Unibanco recently registered its crypto trading and custody operations according to new central bank requirements.

Sberbank stands among Russia’s registered digital depositories. The financial institution intends to launch cryptocurrency services in December, while Moscow Exchange has announced plans for regulated cryptocurrency trading platforms.