The Central Bank of the Russian Federation advocates for verifying the identity of crypto traders * Happy Coin News
Happy Coin News2 min read·1 hour ago--
The Central Bank of the Russian Federation is preparing to block citizens from withdrawing cryptocurrency from wallets managed by domestic companies if they have not passed the identity verification procedure.
The bank wants to require domestic exchanges to use know-your-customer (KYC) protocols to de-anonymize Russian cryptocurrency transactions as part of a crypto regulation package set to take effect in July.
The regulator also plans track cryptocurrency assets of their citizens abroad.
No one is trying to stop Russian individuals and legal entities from continuing to store cryptocurrency in foreign wallets, he stated. First Deputy Chairman of the Bank Vladimir Chistyukhin: “Our only fundamental requirement is that they declare [these assets] to the Federal Tax Service.”
As a reminder, privacy has been a key principle in the industry since the first cypherpunks dreamed up this asset class.
The central bank understands that most Russian crypto traders currently store their coins in foreign wallet services. This is why Chistyukhin says the bank wants to stop or at least monitor capital outflow.
He stated that the bank would not block cryptocurrency transfers from “Russian intermediaries with permits” to global exchanges, such as Binance or bybit.
At the same time, Chistyukhin emphasized the desire to prohibit the transfer of cryptocurrency from Russian custodial crypto wallets “to non-custodial wallets abroad.”
Custodial wallets are operated by third parties, such as cryptocurrency exchanges, that manage private keys and secure assets on behalf of their clients.
Non-custodial wallets, on the other hand, transfer control of private keys to their users. This prevents anyone other than the coin owners from accessing the wallet.
“From a compliance perspective, we want [Russian crypto service providers] to be as transparent as possible,” Chistyukhin said. “This will ensure that Russian intermediaries don’t expose themselves to risk.”
The Central Bank emphasized that the regulator is not interested in confiscating Russians’ cryptocurrency.
Nothing will happen to Russian citizens’ coins. They belong to Russian residents, and that’s how it will remain. There will be no penalties for ownership, and no restrictions on the use of these coins,” the bank representative promised.
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Originally published at https://happycoin.club on April 14, 2026.
