Russia Prohibits Self-Custody Withdrawals From Regulated Crypto Accounts
(4 hours ago) · 1 source · Summarized by CryptoBipto
Russia has introduced regulations that prevent users of regulated cryptocurrency accounts from withdrawing funds to self-custody wallets. The rule effectively requires that crypto held within the country's regulated framework remains under custodial control rather than being transferred to wallets controlled solely by the individual user.
WHY IT MATTERS
In crypto, "self-custody" means holding your own digital assets in a wallet where only you have the password (called a private key). Think of it like keeping cash in your own safe at home versus keeping it in a bank. Russia's new rule says that if you use a regulated crypto platform in the country, you cannot move your crypto to your own personal wallet — it must stay with the platform, similar to how a bank holds your money for you. This matters because one of the core ideas behind cryptocurrency is that people can control their own money without needing a middleman. This regulation removes that option for users within Russia's official crypto system, making regulated crypto function more like a traditional bank account.
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