Russia Tightens Cash Controls, Posing Hurdles for Crypto Traders

Russia's new banking regulations, effective September 1, mandate strict monitoring of ATM withdrawals to combat fraud. Suspicious transactions will trigger alerts and impose a daily cash withdrawal limit of ₽50,000 for 48 hours. While aimed at reducing financial crime, the rules threaten to disrupt cash-reliant cryptocurrency operations, particularly small exchanges and peer-to-peer platforms.

Fraudulent activity surged in Q2 2025, with 273,100 scams totaling ₽6.3 billion, prompting the Central Bank of Russia to issue stringent guidelines. Unusual withdrawal times, atypical amounts, or infrequently used ATMs will now raise red flags. crypto traders relying on cash liquidity may face operational challenges as compliance pressures mount.

Market participants are advised to maintain consistent transaction histories through established banking channels and limit transfers to trusted counterparts. The regulatory environment appears poised for further tightening, potentially accelerating crypto markets' shift toward non-cash settlement methods.