Russia's Cryptocurrency Users Flock to Self-Custody Amid Tightening Regulations

With the Russian government set to implement new regulations on cryptocurrency trading and custody in September, hardware wallet sales have surged more than double at major retailers.

The key driver of this trend is a hard annual buying cap of 300,000 rubles ($3,700) imposed on non-qualified investors through licensed intermediaries. This restriction applies to virtually the entire market, with around 98% of Russian crypto investors falling into this tier.

The law also maintains Russia's existing ban on using cryptocurrency as payment for goods and services domestically, treating it purely as an investment asset subject to strict oversight.

As a result, many users are opting for self-custody by moving their assets offline to hardware wallets. This approach offers several benefits under the new framework, including immunity from account actions, preserved autonomy, and no ledger tracking.