Russia's Crypto Investors Stockpile Hardware Wallets Ahead of New Regulations
Russian cryptocurrency investors are stockpiling hardware wallets ahead of new regulations coming into effect on September 1st, according to two major retailers. M.Video reported a 107% increase in sales volume and a 92% increase in sales value of physical crypto wallets on its platform in the second quarter compared to the first.
Wildberries saw an 84% rise in sales volume in the first half of this year, with revenue increasing by 60%. The new regulations will allow regulated exchanges and digital custodians, but Russians will not be able to withdraw funds from these institutions into personal wallets without going through approved organizations.
The increased demand for hardware wallets may indicate a temporary reaction to the upcoming changes or a more durable trend. Technical risks persist despite their use, as highlighted by a recent Coldcard firmware vulnerability that could result in losses exceeding 116 million dollars.