Russia's Crypto Holders Flock to Hardware Wallets Ahead of Regulations
Russia's demand for hardware wallets has surged ahead of new crypto regulations set to come into force on September 1. According to M.Video, a major Russian retailer, unit sales of hardware wallets rose 107% in the second quarter compared to the first quarter, while sales value increased by 92%. The same trend was observed at Wildberries, another retailer, where unit sales climbed 84% in the first half of this year compared to the same period last year, with a 60% increase in sales value.
The surge in demand for hardware wallets suggests that consumers are preparing for the new regulations, which will limit crypto transactions to approved exchanges and digital depositories. The new framework will also cap retail investors' purchases at 300,000 rubles per intermediary. Domestic crypto payments remain banned under the new rules.
Experts point out that while hardware wallets offer an added layer of security for cryptocurrency holders, they are not foolproof. A recent vulnerability in Coldcard, a popular hardware wallet brand, resulted in losses exceeding $116 million. The incident highlights the importance of due diligence when choosing a hardware wallet.