Russia’s proposed crypto bill would still allow non-custodial wallets for international settlements

Russia’s proposed cryptocurrency legislation would not bar the use of non-custodial wallets in international settlements, according to Vladimir Chistyukhin, first deputy governor of the Bank of Russia. He said the restriction being discussed in the bill does not apply to cross-border settlement scenarios, leaving room for non-custodial wallet use in that context. During the legislative process, authorities also examined whether Russian investors should be allowed to use non-custodial wallets. That option was ultimately rejected. The stated reason was to reduce anti-money laundering risks and tighten oversight. Under the framework described by Chistyukhin, users would still be able to move crypto assets from custodial wallets inside Russia to custodial wallets in infrastructure located abroad, and then transfer those assets into non-custodial wallets. The remarks outline a distinction in the draft approach: direct investment use by Russian investors would be restricted, while international settlement activity would remain outside that limit.