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

[Arenga pinnata]

I think Russia crypto regulations is becoming something else.

What’s most evident from all this is that the Russian system seems to genuinely want to centralize everything.

After all, all trading will be channeled through the state’s official financial institutions, such as the major banks they own, which will undoubtedly serve as exchange operators and other digital custodians.

In fact, it’s reported that non-qualified retail investors are limited to a maximum purchase of 300,000 rubles per year.
(Sourch: https://cryptowave.co.id/articles/rusia-berencana-larang-total-transaksi-kripto-p2p-mulai-1-juli-2027)

But by the way, there are already at least 4 crypto exchanges there and 5 digital custodians that appear to have obtained legal status and are registered under the new digital asset framework law. And I think that number will likely grow, right?
(Sourch: https://www.kucoin.com/id/blog/hk-bank-of-russia-approves-first-5-digital-custodians-and-4-crypto-exchanges-a-turning-point-for-institutional-digital-asset-regulation)

[bitbollo]

The same has been already done in Europe and mostly of users have not noticed...
Meanwhile during the last weeks, I have seen an exchange (physical) that allow to change USDT in a local currency in a few of Asia nations - only for foreigners/tourist actually!

These regulations for a CEX would be applied also abroad / are applied also in other nations for their companies or are regulations valid only inside their border/their citizen?
USDT are evaluated at the same level of other crypto (like XMR or even BTC) or these have a different kind of regulation?

[free-bit.co.in]

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

Sure , they cannot directly control every transaction between non custodial wallets. But once a ban is in place, you are not free  to transact like you used to . You  might still be able to do it technically, but if you get caught, you could face legal consequences.

It's  the same with countries that ban Bitcoin.  Some people will still go ahead and invest in it anyway .  A ban doesn't mean everyone quits , it just means they're taking on way more risk.

[Somegory]

There was a similar ban in my country before, people still find a way around it, they started using other means like telegram P2P and the government just got tired of everything, they still bothering people.

I don't know how the Russia government is going to make this work but I can't compare Russia with my country in terms of technology, they are way ahead of us, maybe they will be able to control people one way or the other.

If it works many people in Russia will have to follow the rules, many people already don't see anything wrong with using centralised exchange for trading this days, maybe no room for wrench attack on Russia soil?

[viljy]

This is aimed at ensuring that absolutely all transactions are conducted through official intermediaries who charge a fee. And, of course, these intermediaries are banks. Furthermore, if a person buys cryptocurrency through such an intermediary, they cannot withdraw this cryptocurrency from the system to a non‑custodial wallet or transfer it to someone else; they can only sell it through the same intermediary (again, with a fee).

In any case, it turns out that the state officially prohibits non‑custodial storage of cryptocurrency. It is unclear how this will be controlled in practice. For example, if cryptocurrency is exchanged for cash, this is impossible. In general, this is another step towards the outflow of customers and money from the banking system back into cash. All of this will end with the growth of the shadow economy, as is always the case.

[Dr.Bitcoin_Strange]

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

It might not, I assume that even if the unapproved exchanges or trading platforms is blocked, those full time traders will still find a way to use the exchanges of their choice in carrying out the different types of trading that they do, the only challenge would be if the exchange put a restriction on people from there. In my country, there's about two exchange I can't access but if I want to use them, I use VPN  and they don't have issues with that while there is another exchange that I tried to register on and they said there's restriction in my region. So, what am just saying is that, as long as those full time day to day crypto traders can still access those unapproved exchange, they won't completely comply to this ban that their government want to put.

[Synchronice]

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.

Stupid laws. The point is to make degraded crowd happy. There are people who become happy when they hear that gambling is getting banned in their own country but they fail to realize that it's not gonna solve anything inside the country, actually, it will only make money go from their own country to another.

Making P2P trading illegal is probably the dumbest thing I've heard recently. It will only make things worse in terms of control because too many will move on cash.

It fights against crypto's whole principle. It was created to get rid of 3rd parties in payment and to be a P2P system.
Okay, they might make it difficult to trade crypto P2P via card but what about cash? Will they go so far that they'll hire undercover cops for making a fake trade to label person as criminal and arrest? I wouldn't be surprised because prison terms can reach seven years, which is insane.

[pooya87]

The world is moving toward more regulations and restrictions of the crypto world which always translates into more surveillance as well. We have been expecting such silly laws to be enforced for a couple of years now and there are more to come in many countries from governments that seek maximum control. Sometimes they are going to be very silly like this one trying to ban P2P trades which is impossible. Although a bigger issue with the new regulation here is the ban on self-custody! The Central Bank of Russia is actually saying that you are not allowed to transfer your own bitcoins from your centralized custodial account to a non-custodial wallet where you control the keys!