Russia’s Draft Crypto Wallet Limits Exempt International Settlements

Russia’s proposed crypto circulation bill would bar Russian investors from investing directly through noncustodial wallets but preserve their use for international settlements, a first deputy governor of Russia’s central bank said.

The deputy governor said the bill’s drafters considered allowing investors to use noncustodial wallets for investment but rejected the approach. The decision reflected investor risks, anti-money-laundering requirements and regulatory requirements.

The proposed restriction would not prevent users from moving crypto from a custodial wallet on Russian infrastructure to a custodial wallet abroad, then to a noncustodial wallet. Noncustodial wallets would remain permitted for international settlements, the deputy governor said.