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

[hd49728]

You’ve mentioned only a part of the "problem" with this regulation. The most interesting aspect is as follows:

- Citizens are not permitted to store these "cryptocurrencies" outside of the regulated infrastructure (i.e., in cold wallets, hot wallets, or any other type of storage). An "interesting" form of regulation, wouldn't you say? If these "cryptocurrencies" can't be used as actual cryptocurrencies, what is their purpose? Their core properties become impossible to utilize.

It's a most shittiest and shadiest part, Russian government no longer want to tax citizens but from now they want to completely control money of citizens, if practically they can enforce that. It's easily to vision that they will never get that 100% completed control on citizens' money from fiat currency to cryptocurrency but it's what they want to achieve and they have set up laws and regulations for it.

Citizens will never let governments control all money they have, and there will be ways to do that but leaving in Russia, from now, if you do something and give government staffs like policemen to knock your doors, you will very possibly get big troubles later with many things including cryptocurrency you store at home in your non custodial wallets.

[Don Pedro Dinero]

In a way this is to be expected, the European Union is doing the same thing but with a backdoor and less direct wording.

That's false. P2P transactions are excluded from the MiCA regulation.

That seems to be the case. I used AI to translate and analyze the actual announcement released by the actual Central Bank of Russia here (https://www.cbr.ru/develop/cryptocurrency/) and it seems to have no mention of banning self-custody itself but only when people want to transfer the funds they had on a centralized exchange out of it to self-custody.

But have you looked at all the links contained within that link, all of which have been translated using AI? I’ve seen that there were quite a few. I doubt the newspaper made it up by citing that very link as a reference.

Anyway, if that were the case, it would be trying to stop the tide.

[EarnOnVictor]

I think Russia crypto regulations is becoming something else.

That's Putin calling the shot underground! He forcefully controls everything now; the very effect of Russia-Ukraine war.

The issue is that Russia is facing serious economic and financial problems, and their financial institutions are now overwhelmed and untrustworthy, with people losing trust in their banking system and their savings as they freeze their cash, thereby looking for various means to bypass the system.

And of course, crypto is the number 1 saviour in this matter. I guess this is causing serious capital flight out of Russia and the government might not be able to account for some funds and financial flows anymore.

[Jubilee58]

This is very serious , and I believe this decision by the the Russian government is definitely going to stand as a barrier to cryptocurrency trading, and transactions in Russia. The elimination of P2P transactions means buyers, and sellers will no longer come in agreement before any transactions will take place. This is also another way of monitoring cryptocurrency traders since cryptocurrency can only be traded on the approved exchanges, and of which those exchanges are going to work on the terms and conditions given to them by the Russian government. The Russian cryptocurrency traders will definitely not be comfortable with this system of regulation, in a situation where your cryptocurrency cannot be withdrawn to your noncustodial wallet, which means you only have to withdraw directly to your own bank where inflation will affect your money with time. I think there could be a change in such decision before the time comes.

[Nathrixxx]

The question we should be asking ourselves at this stage is why centralized exchanges are still gaining traction and why people use them when they could use a decentralized exchange.

We are the ones who are giving them the strength and more power to continue with their regulations and other strict policies that subject our assets to their control, and this is even more at our own risk, considering the series of events that have been happening to centralized exchanges these days and how several people have been affected- us. Using a centralized exchange offers no privacy and risks losing our assets to them.

So, why are we still using centralized exchanges?

[stompix]

The same has been already done in Europe and mostly of users have not noticed...

Where the fuck did this happen?
Where in what country, are you banned from sending your coins to your own wallet!
Name one fucking country in which this happens!

This is how the whole topic feels like:



Russia bans p2p tarsnfers and self-custody, and people argue that the EU is worse!

In a way this is to be expected, the European Union is doing the same thing but with a backdoor and less direct wording.

You should really pull your tongue out of that back door, even if it's imaginary, you should really stop doing that!

[Smartprofit]

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.

While I wouldn't say this categorically, Russia operates under an authoritarian, or even totalitarian, system of government. Those who govern the country strive for total state control over all financial, information, and technological flows. 🧑‍💻

Starting July 1, 2017, organizing illegal cryptocurrency exchanges in the Russian Federation will be punishable by up to seven years in prison. A ban on P2P cryptocurrency transactions within this paradigm is entirely logical.

In the future, as far as I understand, the plan is to achieve total control over all thoughts and actions of the country's citizens, not just financial transactions. For example, by 2032, all 5G smartphones are planned to incorporate state-controlled cryptography. In other words, the plan is to achieve total control over citizens at all levels: physical, software, hardware, and so on.  Even if you wanted to conduct illegal P2P exchanges, you wouldn't be able to because the internet, internet providers, operating systems, smartphone apps, cryptography and encryption systems, and devices would all be government-controlled. These are plans for the future, but they are already being implemented. 💁

[Moreno233]

This is just another attempt to take hold of every cryptocurrency transaction happening in the country. If the ban all P2P trading outside their approved exchanges, it means they will be able to monitor all entry and exit points of the Rusian ruble into cryptocurrency so that they can use this for tax and other purposes. This is simply a broader regulation of cryptocurrency and if it succeeds in Russia, other countries might copy that.

[Tamaperdana]

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 think this might put a bit of pressure on Russians involved in the crypto world, because if, for example, this regulation is actually implemented there next year, it’s very likely that some inconveniences will arise. This is because, even though people involved in crypto and Bitcoin there will still be able to access and trade through exchanges approved by the government, But sometimes the exchanges might not be very user-friendly, which could make the whole experience unpleasant. Still, I hope everything turns out okay there. I’d definitely be worried if something like this were implemented in my own country. So, yes, fortunately, that’s not the case for now. Other than that, we’ll just have to wait and see what happens there.

[SquirrelJulietGarden]

Where the fuck did this happen?
Where in what country, are you banned from sending your coins to your own wallet!
Name one fucking country in which this happens!

This is how the whole topic feels like:

Russia is a nation that has very opposite philosophy than many other countries in Europe and in the EU. This strict policy in Russia can not be enforced by other nations in EU where people as citizens have their votes and actual rights to vote the current government and leading party out.

In Russia, it's impossible politically.

Russia bans p2p tarsnfers and self-custody, and people argue that the EU is worse!

Russia does not belong to EU.

Years ago they wanted to join NATO.

Key Historical Attempts and Inquiries

• 1954 (Soviet Union): The Soviet government sent a note to Western leaders proposing to join NATO as a way to reduce Cold War tensions and create a common security space, which Western powers rejected.
• 1990–1991 (Mikhail Gorbachev and Boris Yeltsin): Following the end of the Cold War, Russian President Boris Yeltsin raised the long-term possibility of Russian membership in a letter to NATO, though he did not file a formal application.
• 2000–2002 (Vladimir Putin): Early in his presidency, Vladimir Putin expressed openness to or inquired about NATO membership in interviews with the BBC, David Frost, and U.S. President Bill Clinton. Putin later stated he expected an invitation as an equal partner rather than going through a standard application process like smaller nations.

[MisFoxie]

-snip-

That means everything will continue as before, but they will impose limits on direct person to person Bitcoin transection so that the government can control buying and selling. Maybe they have observed some activities that they cannot control and through this new law they will be able to bring all transactions under their control and impose taxes on everyone properly.

Since the government cannot completely stop Bitcoin transactions, if this law is successful and everything runs smoothly other countries may also make similar laws so that they can properly keep tracking crypto transection properly and control peer to peer transactions.

[Charles-Tim]

Since the government cannot completely stop Bitcoin transactions, if this law is successful and everything runs smoothly other countries may also make similar laws so that they can properly keep tracking crypto transection properly and control peer to peer transactions.

The law can not be successfully implemented. You will see people still using VPN to access some online places this forum and create a P2P trade request. Also there will always be direct P2P trades because this is what that is happening in all countries, no matter the laws and regulations. But there will be people that will prefer regulations and not want to evade taxes. Some people do not see it as evasion of anything, but just privacy.

[d5000]

Russian government is one of the most authoritarian ones in the world and one of the most hostile to cryptocurrencies. They have already banned using crypto for payments for goods and services (which is already an atrocity) so this is not really surprising.

Basically the new law restricts "real" usage of crypto (besides speculation) to the political elite. They can order the exchange platforms to ignore their own transactions to evade sanctions, while individuals will always have to put their pants off ...

And no, MiCa isn't even close to this and doesn't even affect P2P in any way, thanks @Don Pedro Dinero and @stompix to clarify that.

Note that @Darker45 and @pooya87 are correct imo: Self-custody isn't technically banned in that Russian regulation. But afaik interpreting the articles correctly it would only be possible to obtain self-custodied BTC through mining / cloud mining or buying before mid-2027. I wonder if something like reselling server space for BTC in a P2P way (to foreigners, as Russians aren't allowed to pay for that with BTC ...) would be still possible (or use a proof-of-capacity altcoin? but then you can't trade it for BTC legally ...).

I wonder if Russia has an exception for "private non commercial trades", a lot of countries do have that and you can barter or trade most goods (excluding stuff like weapons or illegal drugs) without the State's intervention. If that exists, it would open a "hole" for cash-to-BTC trades between friends or neighbors. They could also try perhaps to buy non-custodial BTC when abroad.

PS: A better article on the topic is on decrypt.co.

[coupable]

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.

It is a form of restriction, because by sanctions it cannot prohibit the use altogether. In contrast, banning the peer-to-peer trade is an easy solution, as they cannot totally prohibit their use, because it is in their favor that citizens have to accept cryptocurrency payments to break the sanctions. But that means that the decision has to be taken much in advance to be able to test the effects over a long period of time before the ban comes into place.

[knuckey]

The good news is that Russia supports Bitcoin and is simply tightening regulations in line with those implemented in Russia.
The longer the principles of privacy and freedom are distorted in Bitcoin (crypto), the more governments intervene. It's possible that in 10 years, we won't find the core principles of digital currency anymore.

[Die_empty]

That's Putin calling the shot underground! He forcefully controls everything now; the very effect of Russia-Ukraine war.

The issue is that Russia is facing serious economic and financial problems, and their financial institutions are now overwhelmed and untrustworthy, with people losing trust in their banking system and their savings as they freeze their cash, thereby looking for various means to bypass the system.

And of course, crypto is the number 1 saviour in this matter. I guess this is causing serious capital flight out of Russia and the government might not be able to account for some funds and financial flows anymore.

The government wants to force citizens to use and even keep the Russian Ruble instead of holding crypto. Russians use crypto as a shield against currency loss of value. The war, sanctions, and other economic challenges are affecting the value of the Russian currency negatively.

Russian exporters and importers are permitted to use cryptocurrencies for foreign trade settlements without the same restrictions imposed on ordinary retail investors.

But Russia will not ban the use of crypto for international trade or external payments. Crypto is still one of the country's major means of bypassing financial sanctions. Kremlin needs crypto to keep its economy afloat; that is why it didn't ban using it for foreign payments.