Russia plans to prohibit direct peer-to-peer cryptocurrency trades and self-custody wallets starting in the second half of 2027, according to a report by BitKE.

The proposed measures would make it illegal for individuals to transact crypto directly with one another outside sanctioned channels. They would also restrict self-custody — the practice of holding private keys in non-custodial wallets rather than through licensed intermediaries.

The timeline matters. A start date in H2 2027 gives Russian market participants roughly two years before enforcement begins, assuming the measure advances through Russia's legislative process without amendment.

What does the ban cover?

Two distinct activities sit inside the reported prohibition:

• Direct P2P crypto trades — transactions executed wallet-to-wallet between individuals, without an exchange or licensed intermediary in between
• Self-custody — holding cryptographic keys independently, in hardware or software wallets outside institutional control

Both categories are central to how Russians currently move digital assets. P2P channels in particular became a fixture of the Russian market after major global exchanges restricted service to the region following sanctions in 2022.

Why does the timing matter?

Russia has spent the past several years tightening its crypto framework rather than banning it outright. The state has simultaneously experimented with crypto in cross-border settlement — a workaround for sanctions pressure on its banking sector — while constraining retail access at home.

A 2027 target for banning P2P and self-custody fits that pattern: keep crypto useful for state-directed flows, squeeze the permissionless edges of the market.

What happens to Russian holders?

If the ban takes effect as reported, Russian users would face a narrowing set of options. Custodial relationships with licensed, compliant platforms would remain the only legal route for holding and trading digital assets. Non-custodial wallets — the tool of choice for privacy-conscious users — would sit on the wrong side of the law.

Enforcement mechanics remain an open question. Self-custody is difficult to police by design; blockchains don't check passports. Regulators typically lean on on-ramps and off-ramps — fiat exchange points, registered platforms, payment rails — to make the prohibition bite operationally.

What comes next?

The reported measure is a plan, not enacted law. Its path through the Russian legislature, possible amendments, and final implementing regulations will determine the precise scope — whether all non-custodial holding is banned or only certain transactions, and which entities bear enforcement responsibility.

Market participants with Russian exposure will watch the legislative calendar closely through 2025 and 2026, when drafts and implementing rules are likely to surface ahead of the H2 2027 start date.

The source report contains limited detail; this article reflects only what was published by BitKE and will be updated as primary documentation emerges.