Russia to ban peer-to-peer crypto trades: What does it mean for traders?

[Oshosondy]

Let me just brief it for you.

Russians can no longer use third-party market place to trade bitcoin and other cryptocurrencies.
Russians can not longer trade P2P also by sending it from noncustodial wallet to noncustodial wallet.

Only Russia approved exchanges and brokers can be used.

The prohibition start on July 1, 2027

https://crypto.news/russia-to-ban-peer-to-peer-crypto-trades-what-does-it-mean-for-traders/

I think Russia crypto regulations is becoming something else.

[Ambatman]

There's a possibility that this might be the future of Cryptocurrency
Such strict regulations
Good thing Bitcoin isn't owned by a single country nor do all country follow similar system.
They want it to be easily traced and also taxed
There's always a benefit they after.

[Aanuoluwatofunmi]

Russians can no longer use third-party market place to trade bitcoin and other cryptocurrencies.

I don't expect Russia to be operating in this manner when they know that majority of their citizen are already adopting to use Bitcoin independently.

Now the government have realized several opportunities that could come when the regulate the crypto sector and have all users operate such under their own approved platforms.

Russians can not longer trade P2P also by sending it from noncustodial wallet to noncustodial wallet.

They are only saying this one to their own benefits but does not apply to any bitcoin user that knows what is doing, how can the government control and regulate a non-custodial bitcoin transaction from one wallet to another? This still sounds a mystery to me if they truly mean about the regulation.

Only Russia approved exchanges and brokers can be used.

The prohibition start on July 1, 2027

It is high time that we begin to see decentralization as a demand for using bitcoin and not a centralized exchange that government may approved and tax us or regulate every affairs that we engage on those platforms they supported.

I think Russia crypto regulations is becoming something else.

Getting weird indeed, it is a challenge for us all to take privacy more serious than ever before if we don't want to be exposed to this centralized authorities and subjected with their regulations on their approved exchanges.

[BlackHatCoiner]

If you're trading P2P, isn't it already given that you want to avoid taxes? Otherwise why trading P2P? Just stick with a Binance account and use the most liquid order book, you'll trade the bitcoin at the best rates.

Making P2P illegal is as effective as making "P2P drug dealing illegal". Chances are the person who wants drugs, and wants them peer-to-peer, wouldn't have his mind changed because of a law.

[oll]

Let me just brief it for you.

Russians can no longer use third-party market place to trade bitcoin and other cryptocurrencies.
Russians can not longer trade P2P also by sending it from noncustodial wallet to noncustodial wallet.

Only Russia approved exchanges and brokers can be used.

The prohibition start on July 1, 2027

https://crypto.news/russia-to-ban-peer-to-peer-crypto-trades-what-does-it-mean-for-traders/

I think Russia crypto regulations is becoming something else.

I've been using P2P in Russia for many years.
Let me put it this way: the authorities made a big statement with this news. But they're very bad at identifying who uses P2P. Because if one citizen receives crypto, the government won't know about it. But if another citizen receives money on their card, it's not considered a suspicious transaction, especially if it's a salary card.
In Russia, everyone uses card-to-card transfers. When selling things, when providing services... The flow is so huge that a cautious Bitcoiner is safe.
Of course, as long as they don't transfer astronomical amounts and use trusted merchants. + If he has legal income on this card.

[Shadiq]

Russians can not longer trade P2P also by sending it from noncustodial wallet to noncustodial wallet.

The biggest question for me is still, how can they control transactions from non-custodial to non-custodial wallets or identify individuals?

As far as I know, they can only see the transactions on the blockchain and analyze the blockchain to identify the amount, recipient, and sender. But it is not possible to know the identity of the person behind the addresses unless there are transactions on a centralized exchange with those addresses. Basically, it is possible to identify a person only if KYC is found through blockchain analysis.

However, I think this law will not be effective for those who are already skilled in using Bitcoin and know how to take action against such a situation. But this law may harm exchange users.

[Donk1]

Well it's obvious that the Russian government just wants absolute control, which isn't something new. Best to say when it comes to peer to peer crypto trading, it's often done without any third party involvement. So by implementing their platforms, they get to add tax as well as track money laundering and other criminal activities.It gives them the power to watch the crypto that goes in and out of their country....That said one thing remains, which is what are their plans on stopping the non custodial wallet transfer? Well to me, it's easy to say this might just end up having both an advantage and a disadvantage in the sense that while trying to gain control, folks will certainly end up looking for other privacy tools at their own risk.that's all.........

[lionheart78]

It looks like Russia is trying to keep track of all the crypto transactions happening in their country.  If that is not a motive, while limiting cryptocurrency trade to the institution, they can have data access.

This is suppressing the freedom given by the Bitcoin network, luckily I am not a citizen of Russia. Like many of the replies here, I am also curious whether Russia can actually pinpoint a citizen who is actively engaging in P2P.

[Taricoins]

If you're trading P2P, isn't it already given that you want to avoid taxes? Otherwise why trading P2P? Just stick with a Binance account and use the most liquid order book, you'll trade the bitcoin at the best rates.

Making P2P illegal is as effective as making "P2P drug dealing illegal". Chances are the person who wants drugs, and wants them peer-to-peer, wouldn't have his mind changed because of a law.

I don't know how a lot of people get away with this stuff, I agree with you with using centralized exchanges like Binance rates are better for users and the local law. And like you said, it's impossible to stop people from engaging in peer2peer transactions because they always find a way around it, I remembered that one time there was a ban on Binance and other centralized exchanges but we still found our way through those restrictions

[Zoomic]

We've seen similar restrictions in other countries before and also how it didn't totally stop P2P trading.

We saw how crypto users were still able ti find alternatives when official channels become too restrictive especially when there's need to make those transactions.

Russian government with this policy will likely push more activity towards their approved platforms but I don't expect every Russian to act in accordance to the policy regardless of how they try to enforce it.

This could reduce crypto trading in Russia because not all traders would want to trade in less convenient conditions.

[FirmWars]

They can ban but can not actually stop P2P Bitcoin transactions because Bitcoin transactions will occur directly between self custody wallets without using a centralized exchange, so anyone that wants to make use of p2p will still do so as long as blockchain does not have a mechanism of rejecting a bitcoiners transaction simply because the initiator and receiver of the transactions are Russian citizens. I won't worry about this because it can not prevent people from doing p2p, even if the government are monitoring the process of their ban, they can not still stop people and that's one thing I am happy about.

[Karl_3000]

We've seen similar restrictions in other countries before and also how it didn't totally stop P2P trading.

Which country have you seen this kind of restrictions before? The only countries that I have seen something similar are EU and UK, but they only say people should declare their self-custody wallet addresses but I did not see anything about banning P2P.

We've seen similar restrictions
This could reduce crypto trading in Russia because not all traders would want to trade in less convenient conditions.

I think most people will not listen. When many people are doing something, the government will find it hard to ban.

[Alphakilo]

We've seen similar restrictions in other countries before and also how it didn't totally stop P2P trading.

We saw how crypto users were still able ti find alternatives when official channels become too restrictive especially when there's need to make those transactions.

Russian government with this policy will likely push more activity towards their approved platforms but I don't expect every Russian to act in accordance to the policy regardless of how they try to enforce it.

This could reduce crypto trading in Russia because not all traders would want to trade in less convenient conditions.

All these restrictions is simply geared at control. The government will keep fighting everyday to discourage a decentralized currency system and come up with more ways than one to frustrate citizens to this effect.
They tried CBDC, they brought in CEX, they banned banks from interacting with crypto currencies, they closed down many platforms for accepting crypto currency and now they intend to target just the main thing that makes it function regardless of all this and that is P2P?  It's just too much you know.
Alternatives will definitely arise and even if they try to stop Bitcoin from using its original protocol by design architecture, we know it won't work as they think it would.

[masulum]

-snip- we know it won't work as they think it would.

this can be true, but half of them will create an alternatives. if access to decentralized transactions becomes more limited because of restrictions, there will be only one way to make transactions through CEX that registered/legal in that country. since no way to make a transaction (buy/sell food and goods with crypto), users will have no choice to convert their money to make withdrawals and doing transactions. In my country, there is a P2P services are run by crypto communities, they always provide tax-compliant transaction receipts. Perhaps if a similar method existed in Russia, P2P service could still operate because there is another way for government to generate revenue from taxes.  this is a P2P alternative that may able to exists to keep P2P available in Russia.

[Odogwu-Blockchain]

We saw how crypto users were still able ti find alternatives when official channels become too restrictive especially when there's need to make those transactions.

So long as crypto deposit address can receive funds from anywhere in the world, the possibility of violating the policy is certain, it's impossible stopping deposit into Bitcoin address, maybe a face to face cash to crypto exchange will emerge.

Russian government with this policy will likely push more activity towards their approved platforms but I don't expect every Russian to act in accordance to the policy regardless of how they try to enforce it.

When it's mentioned that only the government approved wallet will be allowed to trade, regulations will be too much on user's funds since it's going to be a centralized platform, there are many anonymous traders in Russia that will penetrate everything in the darknet market.

[Rengga Jati]

I think Russia crypto regulations is becoming something else.

This regulation is very interesting. The government looks trying to know everything related to the ownership and transaction of crypto. I'm a bit surprising that their central bank also takes a role in this new regulation. It seems the regulation to be more strict in the future although the government doesn't ban crypto there.

It looks like Russia is trying to keep track of all the crypto transactions happening in their country.  If that is not a motive, while limiting cryptocurrency trade to the institution, they can have data access.

Yes, the government want to have the data of all transactions. I'm not sure what the government's goal, but they may avoid the illegal transactions. For the traders, they have no choice, they only can trade in the approved exchanges. However, traders still can get profits through those exchanges.

This is suppressing the freedom given by the Bitcoin network, luckily I am not a citizen of Russia. Like many of the replies here, I am also curious whether Russia can actually pinpoint a citizen who is actively engaging in P2P.

Since Russia isn't a democratic country, I'm not surprised that the government do such way. The government there have their right to push any regulation. Yes, luckily we don't live in Russia. So, we don't need to struggle with the change of crypto regulation there.

[AVE5]

Let me just brief it for you.

Russians can no longer use third-party market place to trade bitcoin and other cryptocurrencies.
Russians can not longer trade P2P also by sending it from noncustodial wallet to noncustodial wallet.

Only Russia approved exchanges and brokers can be used.

The prohibition start on July 1, 2027

https://crypto.news/russia-to-ban-peer-to-peer-crypto-trades-what-does-it-mean-for-traders/

I think Russia crypto regulations is becoming something else.

Looks tough right? I guess as much because most user's are going to be suffocated under the new policy with the highly strict regulations where only the local exchange is being approved.
But excuse me, is there something really new applicable thereabouts? Because I think that even without this new policy it's the government that still have to approve any exchange before being functional as a means to process peer to peer transactions.
Maybe the right language is that the Russian government had ban offshore exchange while sets to launched or approves its own onshore exchange platform.
They might not really mean so bad though for the fact they don't entire ban bitcoin while the new era was intended to facilitate on trafficking user's transactions.

[bhadz]

I've been using P2P in Russia for many years.
Let me put it this way: the authorities made a big statement with this news. But they're very bad at identifying who uses P2P. Because if one citizen receives crypto, the government won't know about it. But if another citizen receives money on their card, it's not considered a suspicious transaction, especially if it's a salary card.
In Russia, everyone uses card-to-card transfers. When selling things, when providing services... The flow is so huge that a cautious Bitcoiner is safe.
Of course, as long as they don't transfer astronomical amounts and use trusted merchants. + If he has legal income on this card.

That looks identical in my country. They've already changed the maximum amount for a card owner to avoid AML issues. And I think this is also part of this change that they're doing. So for a normal Russian who's into bitcoin, this won't be something they need to worry about. And the government needs to identify who uses P2P, but even if they cannot determine which one does it. The main thing that they did here is to centralize all the P2P trades, sending users straight to only approved exchanges. That made it easier for them to figure out which users does it.

[Dogedegen]

Let me just brief it for you.

Russians can no longer use third-party market place to trade bitcoin and other cryptocurrencies.
Russians can not longer trade P2P also by sending it from noncustodial wallet to noncustodial wallet.

Only Russia approved exchanges and brokers can be used.

The prohibition start on July 1, 2027

https://crypto.news/russia-to-ban-peer-to-peer-crypto-trades-what-does-it-mean-for-traders/

I think Russia crypto regulations is becoming something else.

In a way this is to be expected, the European Union is doing the same thing but with a backdoor and less direct wording. They try to sound more bureaucratic than Russian direct speaking. Now that Russia has legalized trading and is providing different platforms with the ability to do that, they want two things. This is not so much about fighting privacy or anonymity, but more about collecting taxes and making their existing companies stronger like Sberbank who offered trading recently. In the European Union you have to confirm that the wallet you are sending from when you send to an exchange is a wallet that you own or explain where it is from and what it is if it is noncustodial, something like that. So this is just one step away from banning these kinds of transactions.

The good thing is that they can't really enforce this. They can make it harder for people and prevent these coins from hitting regulated exchanges in their own country, but outside of that there is not much that can be done. Anyone can trade crypto P2P with cash and bank transfers, if people want to hide those transactions they can do it.

[X-ray]

Every government ultimate purpose with crypto are always tax and control, this will be happening around the world as CARF data sharing initiation is right at the front of the door and it's going to be unavoidable.

In the future either we will see more people using privacy coins or there will be less because of crackdowns.

The dystopian world is upon us and there will be nothing we can do about it unless you vote for crypto friendly people.