Starting September 1, cryptocurrency transfers abroad will become available to individuals, sole proprietors, and companies for foreign economic transactions, said Cifra Markets crypto broker executive director Alexey Korolenko. At the same time, within Russia, settlements in cryptocurrency will remain prohibited.
Who Will Be Allowed to Transfer Digital Currency Abroad
The new procedure will be controlled by the Bank of Russia. Both qualified and non-qualified investors will be able to make transfers. Cryptocurrency will be used for operations outside the country: for example, transferring to your own foreign cryptocurrency wallet or paying for goods and services to a foreign store account.
Such operations will be available to individuals, sole proprietors, and legal entities. But within the Russian Federation, payments in cryptocurrency will not be allowed. This is specifically about foreign economic activity, explained Alexey Korolenko.
In other words, Russia is not opening the domestic market for crypto payments. Money in digital assets can only be used in the cross-border framework, not as a regular payment system for settlements between Russian participants.
Why Use Cryptocurrency for International Transfers
Cryptocurrency is chosen for international settlements when speed, accessibility, and the ability to avoid a long chain of banking intermediaries are important. This method can be convenient for paying for foreign goods and services, transferring funds to your own foreign wallet, or settlements within foreign economic activity.
- Speed: the transaction goes through the blockchain, not through several correspondent banks.
- Fees: the final cost depends on the network, platform, and intermediary, but the user sees it before sending.
- Accessibility: the transfer can be sent to a cryptocurrency wallet abroad if the operation complies with the platform and regulator’s rules.
Which Cryptocurrencies Will Be Allowed for Transactions
Previously, the Bank of Russia included Bitcoin, Ethereum, and Tether (USDT) in the list of cryptocurrencies available for public trading on Russian exchanges. At the same time, the regulator set a limit on cryptocurrency purchases for non-qualified investors.
At the first stage, only Bitcoin, Ethereum, and USDT will be allowed for operations. These assets are already included by the regulator in the list for public trading, so cross-border operations will start with them.
- Bitcoin — allowed for transfers; suitable for operations with the most recognizable crypto asset, but its rate can fluctuate significantly.
- Ethereum — allowed for transfers; used in a developed blockchain infrastructure, with fees depending on network load.
- USDT — allowed for transfers; this is a stablecoin pegged to the US dollar, so it may be more convenient for settlements where a link to fiat currency is important.
- USDC and Litecoin — not included in the list at the first stage.
The currency of settlements itself does not change the main restriction: within the country, cryptocurrency payments are prohibited.
You will be able to buy and sell coins through several types of intermediaries:
- Crypto exchanges — suitable for buying, selling, and transferring coins to an external wallet, but usually require registration and identity verification.
- Crypto exchangers — convenient for exchanging digital assets for fiat money and vice versa; it is important to check the rate, fee, and deal terms in advance.
- Brokers — can accompany transactions and help with buying or selling, but their services also increase the final cost.
At the same time, participants in organized cryptocurrency trading have not yet been determined, notes asset manager and founder of the stablecoin platform Grigory Klumov. Therefore, it is still unclear how international platforms like Binance or online digital currency exchange services will fit into the new scheme.
What the User Will Need
To buy or sell cryptocurrency, you will need a cryptocurrency wallet. Before the transaction, the user needs to:
- Get a cryptocurrency wallet.
- Verify their identity.
- Pass a test on the Russian platform through which the transaction is made.
Next, the procedure is as follows: choose a platform with clear fees and rules, register, pass verification, top up your account, select an appropriate cryptocurrency from those allowed, and buy it for subsequent transfer.
Such an operation will not look like a typical bank transaction. Digital assets move through the blockchain, and access to transactions will depend on the rules of Russian platforms and regulator requirements. Exactly how this will work in practice is still difficult to say.
How to Transfer Cryptocurrency and Convert It to Regular Money
The transfer can be done in several ways, each suitable for different tasks.
- Via an exchange: the user buys cryptocurrency on the platform, specifies the recipient’s wallet address, and sends the coins. Plus — convenient interface and transaction history; minus — verification requirements and possible limits.
- Via a personal wallet: the user stores assets themselves and sends them directly to another address. Plus — more control over funds; minus — any mistake in the address can lead to loss of money.
- Via a P2P platform: the buyer and seller agree to exchange through a service that helps complete the deal. Plus — flexible payment methods; minus — risk of an unscrupulous counterparty and the need to carefully check the terms.
To convert cryptocurrency into fiat money, it is usually sold through an exchange, exchanger, or P2P platform, and then rubles, dollars, or another currency are received in an available way. Before withdrawing, it is important to consider identity verification requirements, platform limits, exchange rates, and fees.
To transfer money from the US to Russia via cryptocurrency, the logic will be similar: the sender buys a permitted digital asset on a platform available to them, transfers it to the recipient’s wallet, and the recipient then sells the asset through a suitable service and withdraws fiat money. In practice, much will depend on the rules of the platforms, requirements for US and Russian residents, identity verification, and available withdrawal methods.
Fees, Timing, Security, and Risks
The cost of the transfer consists of the blockchain network fee, the exchange, exchanger, or broker’s fee, and the difference between the purchase and sale rates. The higher the network load and the more complex the route for converting to fiat money, the more expensive the operation may be.
The transfer time depends on the chosen cryptocurrency, network, and the number of confirmations required by the platform or recipient’s wallet. Bitcoin, Ethereum, and USDT may process at different speeds, so it is worth checking the terms of the specific service before sending.
- Check the wallet address before sending: an incorrect blockchain transaction usually cannot be canceled.
- Check fees before confirming the operation, especially when transferring and subsequently withdrawing to fiat money.
- Consider volatility: Bitcoin and Ethereum can change significantly in price between purchase, transfer, and sale.
- Beware of fraud on P2P platforms and in exchangers; check the reputation of the service and the terms of the deal.
- Remember regulatory risks: starting September 1, cross-border operations are allowed for individuals, sole proprietors, and companies for foreign economic activity, but cryptocurrency settlements within Russia remain prohibited.
