Russia is preparing a stricter regulatory framework (might we consider it misguided and criminal?) for cryptocurrency transactions; starting July 1, 2027, restrictions on direct peer-to-peer transactions are set to come into effect. The goal of this legislation is to channel cryptocurrency exchanges through authorized intermediaries and to limit transfers from exchange to non-custodial wallets (i.e., those managed directly by the user). The strategy focuses primarily on controlling access points: exchanges, brokers, banking infrastructure, and channels for converting between fiat currency and cryptocurrencies.
Authorities can impose licensing requirements, monitor financial flows, restrict account operations, and investigate suspicious transactions. Specific penalties will depend on the applicable regulations and the circumstances of each individual case.
However, regulating Bitcoin transactions is fundamentally different from controlling the Bitcoin network itself. A self-custody wallet can sign a transaction and broadcast it directly to the network, without the need to go through an exchange or a bank. While authorities can track on-chain transactions, identifying the owner of a specific address requires additional evidence. Consequently, the enforcement of such rules may increase the financial, legal, and operational risks associated with P2P exchanges, without, however, making them technically impossible. The most effective measures will focus on the surrounding infrastructure rather than the protocol itself.
PERSONAL THOUGHTS
Russia may be able to limit access to Bitcoin, but preventing all direct transactions between self-custody wallets is something that cannot be contained. Certainly, fear-based campaigns, involving heavy fines or even criminal charges, can have a negative impact on private citizens. It is worth noting that in many nations, particularly in the context of war, Bitcoin and blockchain technology serve not merely as speculative tools, but as a vital means of survival. If Russia is moving in this direction, one must consider that strict prohibition, as history has shown, only serves to further fuel illegal activity. Similarly, China has historically attempted to ban Bitcoin mining multiple times, with little success.
Europe is also heading in this direction, as Bitcoin poses a threat to the "scam" that is the fiat currency system. Fiat currencies are subject to inflation, lose purchasing power, and are controlled by central banks and governments. None of this is possible with Bitcoin; its rules are already set in stone.
What is happening in the EU? We see MiCA, DAC8 and increasingly aggressive KYC (Know Your Customer) requirements. Sensitive data is not handled well by exchanges and tax agencies. It ends up being compromised in data breaches, even sold to local criminals ( French Tax Official Sold Cryptocurrency Investor Data to Criminal Networks ) or on the Dark Web. And what about individual nations?
- The UK is not part of the EU and is therefore not subject to MiCA; instead, it has its own domestic regulation (a cap on stablecoin holdings had been proposed).
- Cyprus and Greece have increased capital gains taxes.
- Germany has imposed a 25% tax (even on long-term holdings).
- Italy proposed a 42% tax rate (later adjusted to 33%) and has also introduced a tax on the mere possession of such assets. Now for 2027, an "exit tax" has also been proposed for those leaving the country (26% on unrealized gains). This applies to all investments, not just crypto. A few years ago, Italy attracted ultra-wealthy foreigners with a rather favorable "flat tax"; now, it is taking back what it had previously granted with interest, to boot.
- In France, a country notorious for "wrench attacks" (armed robberies targeting Bitcoin and crypto holders), there have been proposals to tax crypto-to-stablecoin exchanges (a practice already in place in Italy for years), along with fines of up to €10,000 for failing to declare holdings exceeding €100,000 (in non-custodial wallets).
- The Netherlands proposed taxing unrealized gains (though this legislation has been deferred).
- The only positive note comes from Spain, which has proposed an exemption that would allow users to omit cryptocurrencies held in non-custodial wallets from their tax declarations.
Remember: the wealthy intend to stay wealthy. Ask yourself who is more criminal: governments, or a private citizen who wants to invest in Bitcoin and use it as a currency instead of "Ponzi-fiat" money. I cannot encourage anything illegal, but remember that Bitcoin was not created to follow government rules or to be kept on exchanges. That defeats its whole purpose.
Article always updated with all the possibilities of on-chain farming (airdrop): Some Sites To Earn Crypto Bonus (Old & New)
