Russia will prohibit direct peer-to-peer (P2P) cryptocurrency transactions between individuals beginning July 1, 2027, under a regulatory framework overseen by the Bank of Russia that requires traders to route their activity through authorized intermediaries.

The central bank clarified the deadline in updated guidance, stating that direct transactions between individuals will no longer qualify as permitted cryptocurrency operations after that date. The restrictions form part of a broader effort to bring the country's crypto market under formal supervision.

The rules also prevent individuals from transferring cryptocurrency held in regulated digital accounts to their own non-custodial wallets, where users retain control of their private keys. Taken together, the measures narrow the options available to traders seeking to transact directly or to hold assets outside regulated platforms.

The changes follow the introduction of Russia's legal framework for cryptocurrency trading, which took effect on September 1, 2026. That framework allows approved exchanges, brokers, and other authorized financial institutions — the authorized intermediaries at the center of the new rules — to provide crypto services under central bank oversight, creating a formal channel for regulated digital-asset activity in the country.

Retail investors who do not qualify as professional or qualified investors must pass a knowledge test and are generally limited to purchasing eligible cryptocurrencies worth up to 300,000 rubles ($3,840) annually through each authorized intermediary. Qualified investors face fewer restrictions on purchases.

Russia continues to prohibit the use of cryptocurrencies for domestic payments, but it permits their use in certain cross-border trade transactions. The dual approach reflects the authorities' intention to facilitate international settlements while maintaining control over domestic activity.

The July 2027 deadline — roughly ten months after the framework took effect — gives market participants time to adjust to the new rules, which shift cryptocurrency trading further toward regulated financial institutions and away from direct transactions between individuals.

The effectiveness of the restrictions may depend on enforcement, particularly where transactions involve self-custody wallets and platforms operating outside Russia's regulated financial system. Industry participants have previously raised questions about the practical challenges of preventing P2P trading.

The policy marks another step in Russia's attempt to formalize cryptocurrency markets while restricting how individuals trade, transfer, and use digital assets within the country.

Source: BitcoinKE