Russia plans to ban direct peer-to-peer ( P2P ) cryptocurrency transactions starting from July 1, 2027. Individuals conducting such transactions will need to use authorized intermediaries.

The Russian Central Bank explained in its updated guidelines on Monday that this restriction will end individuals' ability to directly exchange crypto assets without the need for intermediaries. The regulatory authority confirmed that such transactions will only be permitted until July 1, 2027.

Regulators also clarified that individuals are not allowed to transfer crypto assets from their digital accounts to their own non-hosted, or self-hosted, wallets.

At the time this measure was introduced, Russia was expanding its regulated crypto market. On Monday, the Russian Central Bank authorized Russia's largest bank, Sberbank of Russia ( Sberbank ), to provide crypto exchange services, following its prior approval as a digital asset custodian institution.

This approval comes shortly after Russia's new cryptocurrency regulations. The new rules came into effect on September 1st and bring exchange operators and custodian institutions under the supervision of the central bank. Russia continues to prohibit the use of cryptocurrencies for purchasing goods and services.

Industry executives previously told Cointelegraph that it might be difficult to implement restrictions on P2P cryptocurrency transactions and non-hosted wallets. The CEO of Jan3, Samson Mow, stated that compared to centralized platforms, P2P transaction pairs are more resilient to regulatory crackdowns; meanwhile, an executive from SatoshiLabs, Stepan Uherik, mentioned that if wallet applications are banned, hardware wallets and desktop wallets would not be affected.

Relevant reports:Russia Approves First Batch of Crypto Exchanges and Custody Institutions Under New Law