Russia May Allow Limited Corporate Use of Non-Custodial Crypto Wallets, Finance Ministry Says

Russia’s Finance Ministry may permit a limited number of legal entities to use non-custodial crypto wallets under a legal framework, but it does not plan to open such access to retail investors, Deputy Finance Minister Ivan Chebeskov said. According to ChainCatcher, market participants have asked regulators to preserve the right to use both custodial and non-custodial wallets legally, but the ministry is currently unwilling to allow the use of uncontrolled crypto addresses. Chebeskov said the ministry does not intend to ban holding cryptocurrencies in non-custodial wallets. However, when withdrawing assets from legally operating Russian crypto custody institutions and exchange providers, users would only be able to withdraw to custodial wallets that have passed customer identity verification. He added that crypto assets could not be sent from Russian custodial wallets to foreign non-custodial wallets. Russia’s government cryptocurrency bill has passed its first reading in the State Duma and is being prepared for a second reading. Chebeskov said a new version may include additional transaction fees for certain cryptocurrencies, including USDT, to encourage Russians to stop using those assets. He also said an experimental legislative pilot could be considered after the law takes effect.