After the legalization of operators, the Russian crypto market may become more visible to foreign regulators: the wallets of exchanges, brokers, and digital depositories are easier to associate with Russian jurisdiction, and the assets passing through them may be considered higher risk, according to Kirill Pistsov, Head of Product Development at the Finam financial group.
Why Legal Platforms Are Becoming More Transparent
According to Kirill Pistsov, the new rules in Russia make external monitoring of the market easier. The legislation requires participants to legalize, meaning the addresses of liquidity providers and the movement of digital assets become clearer for those tracking transactions.
If foreign authorities decide to increase sanctions pressure, it will be easier for them to identify the wallets of Russian operators. This logic also fits the sanctions related to Russia’s invasion of Ukraine: for foreign platforms, the origin of an asset may become as important a factor as its price or liquidity.
In practice, the owner of cryptocurrency that has passed through Russian licensed infrastructure may face additional checks abroad. A foreign exchange, custodial service, or online digital currency exchange may request proof of funds origin, delay the verification of a transfer, or refuse to credit it. For the user, this means the risk of a stuck transaction, additional documents, and loss of access to external liquidity.
Risk of Discount and a Separate Price Circuit
Pistsov allows that due to such restrictions, arbitrage opportunities between Russian and international platforms will decrease. Within the country, a separate price circuit may emerge, where digital assets will trade at a discount to international benchmarks.
“Limits for unqualified investors and a short list of available assets do not in themselves make cryptocurrency ‘colored,’ but they can reduce the depth of the domestic market,” says Kirill Pistsov.
At the same time, the expert does not single out one specific rule that automatically creates a “colored cryptocurrency” market. According to him, the risk arises at the intersection of new regulation and the sanctions environment.
Which Assets Are Allowed and Where Risks Are Higher
According to the Central Bank’s decision, only Bitcoin, Ethereum, and the USDT stablecoin can be traded on the legal Russian market. Other cryptocurrencies are not included in this legal circuit; control is effectively exercised through licensed operators, who must limit the set of available instruments according to the Central Bank’s requirements.
The breakdown for key assets is as follows:
- Bitcoin: allowed on the legal Russian market; can be stored on a hardware wallet, but checks may occur when transferring to an international exchange.
- Ethereum: allowed on the legal Russian market; storage and external transfer logic is the same as for Bitcoin.
- USDT: allowed on the legal Russian market; risk is higher because Tether can technically freeze tokens at holders’ addresses.
Despite these risks, demand for the legal market in Russia will remain, Kirill Pistsov is confident. For the mass investor, simple things remain decisive:
- Buying with rubles.
- Working through a clear broker.
- Legal protection.
- Transparent tax accounting.
For those who look at digital assets more broadly, two more points are important:
- Price within the country.
- Ability to withdraw coins to their own wallet.
More experienced market participants will take into account the difference between domestic and external quotes. If assets are cheaper in Russia and more expensive abroad, they will try to maintain access to self-custody and external liquidity.
“Real demand will largely depend on whether Russian participants can maintain working channels with external liquidity and prevent the legal market from becoming a completely closed system,” says Kirill Pistsov.
Earlier, Finam Group Chairman Vladislav Kochetkov also warned about the risk of a separate “colored cryptocurrency” market emerging in Russia with a significant discount to international benchmarks. For investors, this is not only a trading issue: restrictions may affect storage, transfers, and long-term strategy, while topics such as mining or AI-based projects take a back seat in this case.
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