Russia’s central bank says Russian residents will no longer be allowed to move cryptocurrency between self-custody wallets, or withdraw crypto from a regulated broker to a self-custody wallet, starting July 1, 2027.
Under the framework outlined by the Bank of Russia, crypto transfers by residents are to be conducted only through brokers or exchanges licensed by the regulator. The policy is aimed at giving authorities clearer visibility into fund movements in the digital asset market and limiting tax evasion, according to the bank and analysts cited in the report.
What the restriction would cover
The Bank of Russia said direct transactions between Russian residents using self-custody wallets will be banned from July 1, 2027. The regulator also said transfers from a regulated broker to a self-custody wallet will not be allowed once the measure takes effect.
The report adds that direct peer-to-peer crypto transfers between individuals are not included in the list of approved transaction types and therefore will be prohibited by that date. Withdrawals from exchanges to self-custody wallets are not permitted, even when the wallet is controlled by the same person.
Transfers allowed only on licensed venues
According to the central bank, residents can transfer crypto assets only through brokers or exchanges that it has licensed. The stated model would keep activity inside regulated platforms rather than allowing assets to move freely to private wallets.
The bank said 13 organizations currently hold licenses as digital currency exchanges. Those licensed entities include major Russian banks such as VTB and Sberbank, indicating that the approved market structure is expected to rely on supervised financial institutions and authorized trading venues.
Why the central bank says it is acting
The Bank of Russia’s stated objective is stronger oversight of the cryptocurrency market. By requiring transfers to pass through licensed intermediaries, the regulator seeks visibility into how funds move and who is involved in those transactions.
Analysts cited in the source said the approach is also intended to reduce tax evasion. Keeping transfers on licensed venues could make reporting and monitoring easier for authorities, compared with activity conducted through private wallets or direct person-to-person transfers.
Expected market effect and next step
The source notes that the new framework is expected to redirect only a portion of trading volume, rather than fully reshape the market at once. Some activity may gradually shift toward licensed platforms over time as the deadline approaches.
For now, the key confirmed milestone is July 1, 2027, when the ban on self-custody wallet transfers between residents and broker-to-self-custody withdrawals is set to begin. Until then, the Bank of Russia’s plan points to a market structure centered on licensed brokers and exchanges, with direct P2P transfers outside that perimeter not contemplated as approved transactions.
Source: news.bitcoin.com