South Africa Crypto Rules Face Revision After Public Backlash

South Africa Crypto Rules Face Revision After Public Backlash

by | Oct 23, 2026 | News

South Africa crypto rules are set for revision after Finance Minister Enoch Godongwana said the government could rethink its planned cryptocurrency regulations in response to thousands of public complaints, according to Bitcoin.com News. Godongwana made the remarks Wednesday while delivering a budget policy statement, acknowledging that the National Treasury and the South African Reserve Bank had received extensive public feedback on the proposed framework for managing cross-border digital asset flows.

The shift matters because the draft framework had drawn criticism from industry leaders and crypto advocates who warned it was overly restrictive and could push digital transactions into opaque, unregulated channels. Critics also said the proposals threatened to undermine South Africa's standing in the global digital economy, according to Bitcoin.com News.

Why the South Africa crypto rules drew criticism

The initial proposals were outlined in the draft Capital Flow Management Regulations 2026 and a subsequent draft Crypto Assets Manual, which were designed to fight financial crime and track money moving abroad through blockchain channels, according to Bitcoin.com News. One of the most contentious measures would have empowered the government to compel people with crypto holdings above an unspecified threshold to report those assets and potentially sell them to the state for South African rands.

Regulators had originally promised to define those thresholds in the draft manual, but no specific figures were provided when the document was published, according to Bitcoin.com News. The manual also set out a strict regime for monitoring transfers between domestic crypto asset service providers and foreign exchanges or self-hosted wallets. Transfers into or out of non-custodial wallets would have been prohibited under the draft rules.

Industry analysts said prohibiting transfers to self-custody wallets would in practice prevent South Africans from using decentralized finance protocols, according to Bitcoin.com News. That concern added to broader warnings that the South Africa crypto rules could isolate users from parts of the digital asset market rather than bring activity into a supervised framework.

Industry reaction to the draft framework

Crypto platform executives were vocal in their criticism of the initial provisions, according to Bitcoin.com News. Luno, a major cryptocurrency exchange active in the region, warned that the rules in their draft form would raise costs for ordinary users, shut local businesses out of blockchain innovations, and leave regulators without oversight.

Platforms including Luno and VALR also warned that restrictive rules would drive users into fully opaque channels, according to Bitcoin.com News. Farzam Ehsani, who co-founded and leads the exchange platform VALR as chief executive, pushed for a broader overhaul and called on authorities to scrap South Africa's decades-old exchange control regime entirely.

Ehsani referenced Nelson Mandela's 1996 State of the Nation Address, in which the former president pledged to gradually phase out apartheid-era capital controls, according to Bitcoin.com News. He also argued that any capital controls that stay in place should treat all technologies equally instead of singling out particular digital tools for restriction.

Godongwana signals a different approach

Godongwana told Parliament that the volume of responses showed the government needed to change course. "We received thousands of comments, and it is clear that we need to take a different approach to these amendments," he said, according to Bitcoin.com News.

The finance minister also indicated that coming regulatory guidelines would track more closely with standards established by the international Financial Stability Board, according to Bitcoin.com News. Regulators are expected to open consultations as part of the revision process, indicating that the next version of the South Africa crypto rules will be shaped through further public input rather than imposed in its current form.

"Consultations will commence, with the aim of publishing a revised second draft of the regulations for further input," Godongwana said, according to Bitcoin.com News. That statement points to a formal redo of the draft framework rather than a limited adjustment.

What happens next for South Africa crypto rules

For now, the established outcome is that South African financial regulators are rethinking controversial draft proposals after a wave of public pushback, according to Bitcoin.com News. Godongwana has suggested that South Africa will revise the draft crypto rules, and the government has indicated it may reconsider the proposed cryptocurrency regulations after thousands of complaints.

The next concrete step is the consultation process and the publication of a revised second draft for further input, according to Bitcoin.com News. Until that document appears, the future shape of the South Africa crypto rules remains tied to how regulators respond to criticism over forced declarations, restrictions on non-custodial wallets, and the broader exchange control regime.

Conclusion

South Africa's government has not finalized its crypto framework, but it has acknowledged that the current draft approach needs to change after thousands of public comments. The finance minister's remarks establish that regulators are preparing a revised second draft, with consultations expected to begin before new language is published for further input.

Frequently Asked Questions

What did Enoch Godongwana say about South Africa crypto rules?

Enoch Godongwana said South Africa may reconsider its proposed cryptocurrency regulations after thousands of public complaints. He also said the government needs to take a different approach to the amendments and that consultations will begin with the aim of publishing a revised second draft for further input.

Why were the draft Capital Flow Management Regulations 2026 criticized?

Critics said the draft framework was overly restrictive and could drive digital transactions into opaque, unregulated channels. One major concern was a proposal that could require crypto holders above an unspecified threshold to declare their assets and potentially compel them to sell those holdings to the government for rands.

Would the draft rules have banned non-custodial wallet transfers?

Yes. The draft manual envisioned a strict monitoring regime covering movements of funds between local crypto asset service providers and foreign platforms or self-hosted wallets. Industry analysts warned that such a ban would effectively cut South Africans off from decentralized finance protocols.

How did Luno and VALR respond to the proposals?

Luno warned that the rules as drafted would make everyday use more expensive, shut domestic companies out of blockchain innovation, and reduce regulatory oversight. VALR chief executive Farzam Ehsani called for a broader overhaul and urged authorities to abolish South Africa's decades-old exchange control regime entirely.

What is the next step for South Africa crypto rules?

The next step is a new consultation process. Godongwana said regulators plan to gather further input and then issue a revised second draft of the regulations, and future guidelines are expected to align more closely with Financial Stability Board standards.

Sources

France DeFi Liability Plan Would Hit Crypto Exchanges Offering DeFi Access

France DeFi Liability Plan Would Hit Crypto Exchanges Offering DeFi Access

by | Oct 21, 2026 | DeFi

France DeFi liability proposals published Wednesday would make crypto exchanges responsible for certain customer losses when they offer access to decentralized finance protocols, according to Cointelegraph. The plan, filed as part of a joint response to a European Commission consultation, would require platforms to check DeFi protocols before listing them and to answer for some incidents if they fail to vet the protocols or ignore known security risks.

The proposal matters because the EU's Markets in Crypto-Assets Regulation currently excludes services provided in a fully decentralized manner without intermediaries. France's approach would not try to regulate DeFi protocols directly. Instead, it would extend investor safeguards by placing new duties on the regulated platforms that connect customers to those protocols.

The joint response came from France's Treasury, the Financial Markets Authority, the central bank and the Prudential Supervision and Resolution Authority, Cointelegraph reported. That broad lineup shows the proposal carries weight across both market regulation and banking supervision in France.

What France DeFi liability rules would require

Under the French proposal, crypto-asset service providers would have to vet DeFi protocols before offering access and then monitor them for vulnerabilities and suspicious activity, Cointelegraph reported. The authorities also backed certification of protocols and smart contracts, alongside liability for platforms in certain incidents.

The authorities said the liability should apply where platforms actively helped customers reach DeFi services. “CASPs [crypto-asset service providers] should be liable for certain incidents affecting clients where they actively facilitated access,” they said, according to Cointelegraph.

The obligations would fall most heavily on significant CASPs, while smaller providers would face scaled requirements. Platforms would still be able to connect customers to uncertified protocols if they carried out their own due diligence and gave enhanced risk disclosures, the authorities said.

That structure would give exchanges a compliance path even when a protocol had not been certified. It would also place more responsibility on platforms to identify weaknesses before customers are exposed to them.

Wallets and the limits of certification

France also addressed non-custodial and self-custodial wallets, opposing blanket certification requirements for developers, Cointelegraph reported. Instead, the authorities favored voluntary certification for more advanced wallets that integrate DeFi services.

That position suggests France is trying to draw a line between software providers and regulated intermediaries. The emphasis remains on platforms that actively facilitate access rather than on every tool used to interact with decentralized markets.

The wallet stance fits the broader logic of the proposal. Rather than impose one standard across all parts of the crypto market, France is arguing for duties that rise when a provider plays a more direct role in giving users access to DeFi.

Wider MiCA changes backed by Paris

Beyond DeFi, France supported shifting oversight of significant CASPs away from national watchdogs and toward the European Securities and Markets Authority, according to Cointelegraph. The authorities also said the current MiCA line for identifying significant platforms, set at 15 million average daily active users in the EU, should be lowered.

They also said regulators should weigh factors such as custody assets, business risks and group complexity in determining which platforms belong under ESMA oversight. In addition, France sought a fresh look at MiCA's asset-referenced token category, which applies to tokens built to hold a stable value by referencing assets or combinations of assets.

The authorities noted that no asset-referenced tokens had been authorized under MiCA. They proposed adapting the e-money token framework to cover multicurrency stablecoins instead.

Together, those proposals show that France is not only focused on DeFi access. It is also using the consultation to press for tighter supervision of large platforms and a rethink of how stable-value tokens are categorized under the law.

Why the Commission is reviewing MiCA

The European Commission is reviewing whether MiCA needs updating as crypto markets develop, Cointelegraph reported. Its consultation sought views on activities that sat outside the law's original scope, including DeFi.

The responses will feed into a report to EU lawmakers due by June 30, 2027. That report could include proposals to amend the law, meaning France's submission is an early step in a longer legislative process rather than an immediate rule change.

For now, the French plan is a policy position, not a binding rule. But it gives a clear signal that one of the EU's largest financial regulators wants MiCA revised to reach platforms that serve as gateways to decentralized markets.

A wider debate over who bears responsibility

The French proposal lands as regulators debate how far liability should extend across crypto markets. The Blockchain Association has urged the US Treasury to narrow proposed GENIUS Act rules and to distinguish regulated stablecoin businesses from DeFi software, validators and ordinary secondary-market activity, according to CryptoRank.

The association wants officials to separate businesses that deal directly with customers from infrastructure such as self-custody software and validators. It also argues that enforcement should require genuine knowledge and meaningful assistance, rather than treating ordinary secondary-market activity as evidence of involvement.

Those are advocacy positions, not changes Treasury has adopted. Still, the US debate underscores the same question raised by France's MiCA response: where regulators should draw the line between financial intermediaries and the software around them.

Conclusion

France's proposal would keep DeFi itself outside direct regulation while making regulated exchanges responsible when they actively connect customers to risky protocols. The next concrete step is the European Commission's report to EU lawmakers by June 30, 2027, which could lead to formal amendments to MiCA.

Frequently Asked Questions

What did France propose for crypto exchanges offering DeFi access?

France proposed that crypto exchanges vet DeFi protocols before offering access, monitor them for vulnerabilities and suspicious activity, and face liability for certain customer incidents where they actively facilitated access, according to Cointelegraph.

Would MiCA's rules change immediately because of France's proposal?

No. France submitted its position in response to a European Commission consultation. Those responses will feed into a report to EU lawmakers due by June 30, 2027, and that report could lead to proposed amendments to MiCA.

Does France want all DeFi protocols certified before exchanges can list them?

No. France backed certification of protocols and smart contracts, but exchanges could still offer access to uncertified protocols if they did their own due diligence and gave customers stronger risk disclosures.

What did France say about self-custodial wallets?

French authorities opposed blanket certification requirements for developers of non-custodial or self-custodial wallets. They supported voluntary certification for more advanced wallets that integrate DeFi services.

What other MiCA changes did France support?

France backed moving supervision of significant CASPs to ESMA, lowering the 15 million average daily active user threshold, and reviewing the asset-referenced token category. It also proposed adapting the e-money token framework for multicurrency stablecoins.

Sources

Ripple Backs SEC Regulation Crypto Assets, Urges Final Rule to End Uncertainty

Ripple Backs SEC Regulation Crypto Assets, Urges Final Rule to End Uncertainty

by | Oct 21, 2026 | Adoption

Ripple has formally endorsed the U.S. Securities and Exchange Commission's proposed Regulation Crypto Assets, filing a detailed comment letter on October 20 that urges the agency to adopt the framework as a final rule. The submission came on the last day of the public comment period and was addressed to SEC Secretary Vanessa A. Countryman.

The move places Ripple, which spent years in court fighting the SEC over XRP sales, in the position of supporting the regulator's effort to write industry-wide rules. The company argues that clear regulations are needed to protect investors and keep innovation in the United States, and that formal rules would replace the case-by-case enforcement approach it blames for driving crypto businesses offshore.

Alderoty on Regulation Crypto Assets

Chief Legal Officer Stuart Alderoty said Ripple supports the proposal but stressed that the industry needs clear rules instead of years of case-by-case enforcement, according to CryptoRank. He confirmed the submission publicly in a post on X, formerly known as Twitter, where he referenced the company's legal expenses during its concluded SEC lawsuit.

Alderoty said the agency has clear authority to adopt the rules and called for a clearer approach to digital asset regulation. "We support the proposal, and the SEC has clear authority to adopt it," he said, according to CryptoRank.

He argued that the SEC's earlier reliance on individual enforcement actions created uncertainty, restricted legitimate businesses and pushed cryptocurrency innovation outside the United States, Crypto Adventure reported. In a post on X, Alderoty stated that Years of 'case by case, coin by coin' enforcement have pushed innovation offshore, according to NameCoinNews.

Tokens Versus Investment Contracts

A central point in Ripple's filing is the distinction between a crypto asset itself and any investment contract under which it may have been offered, NameCoinNews reported. The company maintains that issuing tokens through investment contracts does not automatically classify the underlying digital assets as securities.

Ripple said the framework is consistent with the Supreme Court's Howey test, which defines an investment contract as involving an investment of money in a common enterprise with profits expected from the efforts of others, according to NameCoinNews. Alderoty called the approach faithful to Howey, the 1946 Supreme Court case, CryptoPotato reported.

Ripple opposes making decentralization an independent requirement for determining when securities obligations have ended, according to kucoin. Instead, the company wants regulators to examine whether issuers have fulfilled or permanently withdrawn their original commitments to investors. What matters is what an issuer actually promised and when those promises end, not a subjective 'decentralized' test, Alderoty wrote, according to CryptoPotato.

The letter also rejects sorting tokens into "company-backed" and "network" camps, warning that the split would revive the "implicit" promise standard the SEC dropped in its 2026 interpretation, CryptoPotato reported. In one example cited in the letter, a company sending 5% of each sale to buy and burn its own token creates an investment contract because the code automates a promise to return revenue to holders.

What the Proposal Contains

The SEC released Regulation Crypto Assets on August 18, aiming to create a clearer framework for certain investment contracts involving digital assets. The proposal establishes two registration exemptions for qualifying investment contracts involving cryptocurrency.

One pathway would permit eligible startups to raise $5 million over four years without traditional securities registration. A second exemption would allow offerings of up to $75 million within 12 months, subject to additional disclosure and financial reporting requirements. The larger exemption includes a $20 million Tier 1 pathway and a $75 million Tier 2 pathway, Crypto Adventure reported, and federal antifraud and antimanipulation provisions would continue to apply.

The proposal also includes a conditional safe harbor allowing a cryptocurrency to cease being associated with an investment contract once the issuer has completed or permanently ended its promised essential managerial efforts. Under a proposed Rule 400, an issuer could file a public Form TR certifying that the work it promised buyers is finished or abandoned, CryptoPotato reported.

Ripple supports the safe harbor but opposes an SEC suggestion to limit it to issuers that fulfilled their promises, arguing that buyers can no longer expect profits from abandoned work either, according to CryptoPotato. The framework builds on a March 2026 joint interpretive release by the SEC and the Commodity Futures Trading Commission that began clarifying how federal securities laws apply to crypto assets, NameCoinNews reported.

Refinements Ripple Wants

While backing the exemptions, Ripple proposed changes to how digital assets are classified, how investment contracts terminate and how secondary-market transactions are regulated. The company wants the SEC to clarify that cryptocurrency issuers do not automatically need to submit a Form TR to establish that an investment contract has ended, Crypto Adventure reported.

Ripple also recommends allowing exchanges, brokers and other intermediaries to rely on completed Form TR filings when determining whether an asset remains subject to securities requirements. Another proposed refinement would extend the safe harbor's treatment of crypto assets to the Investment Company Act and Investment Advisers Act, reducing inconsistent classifications across federal securities laws.

The company is seeking stronger protections for secondary-market transactions involving tokens separated from investment contracts, and it wants Rule 500 clarified to prevent ordinary cryptocurrency trading from inheriting obligations tied to earlier offerings, kucoin reported. Ripple also opposes excluding ordinary broker-dealer transactions from proposed state-registration preemption protections, warning that such restrictions could discourage regulated intermediaries from providing secondary-market liquidity.

On the question of authority, the letter points to Section 28 of the Securities Act and Section 36 of the Exchange Act, which let the SEC exempt class or classes of securities, CryptoPotato reported. Ripple maintains that the SEC can introduce tailored exemptions using its existing statutory authority without waiting for new congressional legislation, a position that follows the Senate's failure to advance the CLARITY Act in September.

Industry Letters and Litigation History

Ripple was not alone. A group of blockchain organizations including Chainlink Labs, the Cardano Foundation, Hedera, Ava Labs, the Stellar Development Foundation and Aptos Labs filed a joint comment letter urging the SEC to codify classifications for digital commodities, NameCoinNews reported. The coalition argued that clearer status would strengthen U.S. competitiveness and reduce legal ambiguity for networks already widely viewed as decentralized.

The Blockchain Association also endorsed the proposed framework on October 20 but requested changes to its fundraising restrictions, Crypto Adventure reported. The industry group wants the startup exemption increased from $5 million to $10 million, arguing that blockchain development, infrastructure and security expenses can exceed the proposed ceiling, and it recommends excluding qualifying airdrops and network participation rewards from fundraising limits.

Ripple's position follows the resolution of its own SEC litigation, which officially concluded in August 2025 when both parties agreed to dismiss their appeals, ending a case that began in December 2020 over XRP sales, kucoin reported. The resolution preserved a July 2023 federal court ruling distinguishing institutional XRP sales from certain secondary-market transactions, while Ripple remained subject to a $125 million civil penalty and an injunction over securities-registration violations.

Alderoty revealed that Ripple spent more than $150 million defending itself throughout the dispute, adding that "No company should have to do that to learn what the law requires," according to CryptoRank. Ripple maintains that formal regulations would provide greater stability than enforcement policies that future SEC leadership could reverse, kucoin reported.

Conclusion

Ripple's October 20 letter puts the company on record supporting Regulation Crypto Assets while pressing the SEC to refine how investment contracts end, how tokens are classified and how secondary-market trades are treated. The public comment period closed on October 20, though the SEC is accepting feedback beyond its formal deadline, according to The Cryptonomist. The framework remains a proposal, with no final adoption date or implementation schedule announced, and the agency must complete its regulatory review before adopting final rules.

Frequently Asked Questions

What did Ripple file with the SEC on October 20, 2026?

Ripple filed a roughly 20-page comment letter addressed to SEC Secretary Vanessa A. Countryman expressing full support for the proposed Regulation Crypto Assets and calling on the Commission to adopt it as a final rule. Chief Legal Officer Stuart Alderoty confirmed the submission publicly in a post on X.

What fundraising exemptions does Regulation Crypto Assets propose?

The proposal includes two registration exemptions for qualifying digital asset investment contracts. One pathway would let eligible startups raise $5 million over four years without traditional securities registration, while a second would permit offerings of up to $75 million within 12 months, subject to additional disclosure and financial reporting requirements.

How much did Ripple spend on its SEC lawsuit over XRP?

Stuart Alderoty said Ripple spent more than $150 million defending itself in the litigation, which concluded in August 2025 when both parties dismissed their appeals. Ripple also remained subject to a $125 million civil penalty and an injunction over securities-registration violations.

Why does Ripple oppose a decentralization test for crypto assets?

Ripple argues decentralization should not be an independent requirement for determining when securities obligations end. The company wants regulators to assess whether an issuer has fulfilled or permanently ceased the essential managerial efforts promised to investors, consistent with the Supreme Court's Howey test.

Which crypto organizations joined the push for clearer SEC rules?

Chainlink Labs, the Cardano Foundation, Hedera, Ava Labs, the Stellar Development Foundation and Aptos Labs filed a joint comment letter urging the SEC to codify digital commodity classifications. The Blockchain Association separately endorsed the framework while asking that the startup exemption rise from $5 million to $10 million.

Sources

Russia P2P Crypto Ban to Take Effect July 1, 2027, Central Bank Says

Russia P2P Crypto Ban to Take Effect July 1, 2027, Central Bank Says

by | Oct 16, 2026 | Analysis

Russia's central bank has set July 1, 2027 as the date when direct peer-to-peer cryptocurrency transactions between individuals will no longer be permitted, requiring residents to route such trades through authorized intermediaries. In revised guidance, the Bank of Russia said person-to-person deals would stop counting as allowed cryptocurrency operations once that date passes, according to reporting by Crypto News and other outlets.

The Russia P2P crypto ban matters because it closes the last channel through which individuals could exchange digital assets directly with one another, pushing all activity into institutions supervised by the central bank. The restrictions also reach transfers between regulated digital wallets and personal self-custody wallets, according to reporting by Coingape, Crypto News, NewsCord and The Currency Analytics.

The central bank's updated guidance, published Monday, October 12, states that individuals cannot trade cryptocurrency directly with each other outside authorized intermediaries from July 1, 2027, according to Coingape and Crypto News. Crypto News reported that the guidance gives residents who currently trade crypto person-to-person until June 30, 2027, after which that route closes.

In its official guidance, the central bank cites Article 30 of Federal Law 282-FZ for the new P2P deadline, Coingape reported. Crypto News reported that the law permits direct transactions between individuals only until the July 2027 deadline, after which residents must go through approved providers, a group that includes licensed brokers and registered exchange operators.

Crypto News reported that the regulator draws a line between brokers licensed by the Bank of Russia and exchange organizations listed in its official register. Russian residents may still purchase and sell cryptocurrencies through these authorized exchanges and brokers after the deadline arrives, Coingape reported.

Self-custody wallet restrictions

Alongside the P2P deadline, the central bank said people may not move crypto assets out of their digital accounts into personal wallets they control themselves, according to reporting by Cointelegraph, NewsCord and KuCoin. Citing part 5 of Article 31, the central bank said account holders cannot withdraw assets into personal noncustodial wallets, Coingape reported.

In a separate answer, the regulator invoked Article 31 to bar person-to-person transfers that use address identifiers run by a digital depository, a prohibition that also covers transfers stemming from deals between those account holders, Crypto News reported. The central bank describes digital depositories as the entities that log customers' crypto holdings and transfers and manage access to the addresses tied to those assets.

The Currency Analytics reported that blocking moves from digital accounts into personal wallets shows the central bank's intent to hold assets within infrastructure it supervises. The outlet described the self-custody wallet ban as probably the most controversial piece of the package.

Regulated market build-out and Sberbank

Russia's framework for cryptocurrency trading took effect on September 1, 2026, letting authorized exchanges, brokers and similar financial firms offer crypto services with the central bank overseeing them, according to Crypto News and NewsCord. Updated regulations that took effect that day brought exchange operators and custodians formally under Bank of Russia supervision, Cointelegraph and The Currency Analytics reported.

The country's biggest lender, Sberbank, won the Bank of Russia's approval to provide crypto exchange services, adding to an earlier green light as a digital asset custodian, according to Cointelegraph, NewsCord and The Currency Analytics. On October 6, the Bank of Russia opened the registration of digital depositories, where Sberbank became the first institution registered, Coingape reported.

Crypto News reported that by September 7 the supervised market had its first registered participants, counting four crypto exchange operators and five digital depositories. Registered firms must follow transaction and recordkeeping requirements immediately, while institutions admitted through the transitional process have until September 1, 2027 to meet the remaining operational requirements, according to that coverage.

Rules unveiled in July cap non-qualified investors at 300,000 rubles of eligible cryptocurrency purchases per year through each intermediary, conditional on passing the required assessment, Coingape and Crypto News reported. Cryptocurrencies remain prohibited as payment for goods and services within Russia, according to Coingape.

Enforcement questions and industry reaction

Industry executives questioned how the Russia P2P crypto ban would be enforced, with Cointelegraph reporting that the curbs on person-to-person trading and noncustodial wallets could prove hard to police in practice. Jan3 CEO Samson Mow said P2P trading is more resilient to regulatory crackdowns than centralized platforms, while SatoshiLabs executive Stepan Uherik said wallet app bans would leave hardware and desktop wallets unaffected, according to Cointelegraph.

The Currency Analytics reported that the central bank can write the rule but that enforcing it against millions of individual users is another matter entirely, describing the resilience of P2P trading as the central bank's biggest blind spot. The outlet said a shadow market of direct trades could persist well past the 2027 deadline even when Sberbank and fellow approved intermediaries absorb most regulated volume, and that the Bank of Russia has not spelled out how it plans to police the harder corners of the market.

What happens at the edges, including hardware wallets, offshore P2P platforms and cross-border transfers, is far less certain, The Currency Analytics reported. The outlet said the long runway to July 2027 leaves the central bank room to assemble its enforcement infrastructure.

Coinfomania reported that traders are assessing the implications of the decision, with broader sentiment cautious as the 2027 rules loom over potential trading strategies and asset valuations. The outlet said the measures are meant to curb the risks of unregulated crypto trading and strengthen protections for consumers in the financial system.

How outlets framed the Russia P2P crypto ban

A NewsCord comparison of seven outlets found that all matched headlines explicitly presented the reported future restriction as a ban. UNITED24 alone added explicit language about forcing citizens into state-regulated exchanges, attributing its account to The Moscow Times, while crypto.news added a direct question about the implications for traders, NewsCord reported.

The Moscow Times reported on October 15 that P2P cryptocurrency transactions between individuals will remain permitted only until July 1, 2027, according to UNITED24 Media. The central bank stated, when asked whether individuals could continue trading cryptocurrency directly, that the law does not provide for direct P2P transactions between individuals after that date, UNITED24 reported.

NewsCord noted that TradingView republishes Cointelegraph's report, so the publisher count does not measure independent confirmation. It also said the highlighted spans concern direct trading and do not validate additional self-custody claims or establish the underlying rules as legally settled.

Conclusion

The Bank of Russia has confirmed that direct peer-to-peer cryptocurrency trades between individuals will end on July 1, 2027, with June 30, 2027 set as the final day for that trading route. After the deadline, residents must transact through licensed brokers and registered exchange operators, and separate rules already bar transfers from regulated digital accounts to personal noncustodial wallets.

The next concrete steps fall on the market: registered firms must comply with transaction and recordkeeping requirements immediately, while institutions admitted under transitional provisions have until September 1, 2027 to meet remaining operational requirements. Whether the central bank can enforce the restrictions against individual users remains an open question raised by industry executives.

Frequently Asked Questions

When does Russia's ban on direct P2P crypto trades take effect?

The ban takes effect on July 1, 2027. The Bank of Russia's updated guidance sets June 30, 2027 as the final day individuals can buy or sell cryptocurrency directly with one another, after which such trades must go through authorized intermediaries.

Can Russians still trade crypto after the July 2027 deadline?

Yes. Russian residents may still purchase and sell cryptocurrencies through authorized channels, including licensed brokers and registered cryptocurrency exchange operators supervised by the Bank of Russia. Non-qualified investors face an annual cap of 300,000 rubles per intermediary, subject to an assessment.

What do the new rules say about self-custody wallets in Russia?

The Bank of Russia clarified that individuals cannot transfer crypto assets from regulated digital accounts to their own noncustodial, self-custody wallets, citing Article 31. Transfers between individuals through addresses administered by digital depositories are also prohibited.

Which institutions are authorized to offer crypto services in Russia?

Sberbank, Russia's largest bank, received authorization to offer crypto exchange services after earlier approval as a digital asset custodian, and it became the first registered digital depository on October 6. By September 7, four exchange operators and five digital depositories had entered the supervised market.

Why do industry executives doubt Russia can enforce the P2P crypto ban?

Jan3 CEO Samson Mow said P2P trading is more resilient to regulatory crackdowns than centralized platforms, and SatoshiLabs executive Stepan Uherik said wallet app bans would leave hardware and desktop wallets unaffected. Cointelegraph reported the restrictions may be difficult to enforce.

Sources

FCA Crypto Authorisation Gateway Opens as UK Brings Digital Assets Into Full Regulation

FCA Crypto Authorisation Gateway Opens as UK Brings Digital Assets Into Full Regulation

by | Oct 14, 2026 | How to Crypto

The Financial Conduct Authority opened its FCA crypto authorisation gateway on 30 September 2026, allowing firms to apply for permission to carry on newly regulated cryptoasset activities in the UK. The move brings crypto businesses operating in the country into full FCA regulation for the first time, with standards covering consumer protection, safeguarding of customer assets, market integrity and financial resilience.

The gateway was created under the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026, which amend the Regulated Activities Order to establish a new set of regulated activities directed at cryptoassets. The regime replicates for crypto businesses the regulation of familiar functions in traditional financial markets, including issuance, custody, trading venues, dealing, intermediation and certain staking services.

Deadlines and Transitional Arrangements

Businesses planning to keep serving the UK market must submit their applications through the FCA crypto authorisation gateway no later than 28 February 2027, with the full regime taking effect on 25 October 2027. The regulator has urged firms to file well ahead of that date instead of treating it as a target, according to JD Supra.

Submitting an application within the prescribed period allows an eligible existing business to benefit from statutory transitional provisions, continuing to provide cryptoasset services, including taking on new business, while the FCA reviews its application after the new regime commences. A firm does not need to have received final authorisation by the February deadline, but those applying after it may struggle to gain approval in time and could need to cease the relevant regulated activities until permission is obtained, JD Supra reported.

Decisions on applications filed within the window are expected ahead of the regime's start date, the regulator said. Applicants must show clearly that they satisfy the regulator's standards, and any firm unable to demonstrate this will be denied authorisation for the UK market.

How to Apply Through FCA Connect

Applications for Part 4A permission covering the new cryptoasset regulated activities can now be submitted via FCA Connect. Firms that already hold FSMA authorisation have the option of seeking a variation of permission instead, adding the relevant cryptoasset activities to what they are currently permitted to do.

A firm's existing regulatory status will not carry over into the new framework on its own. Registration with the FCA under the Money Laundering Regulations does not entitle a crypto business to an automatic Part 4A permission for the corresponding activity from October 2027, according to JD Supra. Businesses with current FSMA authorisation, or those supervised under the Payment Services Regulations or Electronic Money Regulations, must assess whether the permissions they hold extend to their cryptoasset work and seek a variation where they fall short.

The FCA is supporting firms to prepare for authorisation through pre-application discussions and webinars, which are available on demand. Its Pre-Application Support Service remains available, though the regulator expects meeting requests to come with substantive detail rather than promises to supply information at a later stage, JD Supra reported.

What the New Regime Requires

Crypto businesses caught by the rules will face oversight much like that applied to conventional FCA-authorised financial services firms. Obligations will span capital and prudential rules, standards for how business is conducted, governance, systems and controls, the Consumer Duty where it applies, plus regulatory reporting and ongoing supervision.

Senior staff at authorised firms will fall under the regulator's individual accountability framework, which encompasses the senior managers and certification regime. Governance structures must be proportionate to the nature, scale and complexity of each firm's activities, with clear allocation of senior-management responsibilities.

Issuers of stablecoins will face rules on how backing assets are safeguarded, under a new Client Assets Sourcebook (CASS) 16 chapter of the FCA Handbook. Custodians will face specific requirements concerning the safeguarding of client cryptoassets, and firms that outsource custody to third parties must weigh how those arrangements affect their own regulatory obligations.

Once authorised, firms come under continuing FCA oversight that includes reporting duties and information requests, alongside an expectation of open and cooperative dealings with the regulator. The FCA's existing enforcement toolkit will be available in relation to the new regulated activities, including financial penalties, public censures and restrictions or prohibitions where statutory conditions are satisfied.

Scope Reaches Overseas and Decentralised Businesses

A broad set of business models could be captured, spanning exchanges and trading venues, brokers and other intermediaries, custodians and wallet providers, stablecoin issuers, some market makers and principal dealers, and firms that arrange staking services. The perimeter analysis remains highly fact specific, according to JD Supra.

A firm whose principal place of business sits outside the UK may still fall in scope where it has UK employees or agents undertaking regulated dealing or arranging functions, or otherwise operates through substantive UK-based operations. That could include UK servers, UK-targeted marketing efforts or bank accounts. Regulation may also apply where relevant transactions are negotiated, arranged or executed in the UK or through a UK establishment, or where safeguarding arrangements involve the exercise of relevant control from the UK.

Technology providers, introducers, non-custodial businesses and decentralised protocols will need to consider carefully whether their particular activities satisfy the statutory definitions and territorial requirements, and whether an exclusion applies. Exclusions and exemptions will be considered on a fact-specific, case-by-case basis.

Preparing for Authorisation

Dominic Cashman, director of authorisation at the FCA, said the new regime will give consumers greater protections and firms a clear framework to operate in. The regulator said the framework reflects the government and FCA's determination that the UK's crypto sector should be defined by integrity and trust, along with growth and innovation.

The authorisation process is designed to establish that an applicant can meet FCA standards in practice, and policies that do not correspond to a firm's actual operating model are unlikely to be sufficient, according to JD Supra. Firms should compare their existing governance, financial resources, safeguarding, compliance, risk management, operational resilience and conduct arrangements against the FCA's final rules, and identify proposed senior managers with sufficient expertise and authority.

The FCA published its final crypto rules and guidance in June 2026, with the final rule package published on 30 June 2026 illustrating the scale of the transition, according to JD Supra. The regulator has confirmed the application of core handbook requirements to regulated cryptoasset firms and has published specific guidance on applying the consumer duty to the sector.

Conclusion

The opening of the FCA crypto authorisation gateway on 30 September 2026 starts the clock for crypto firms seeking to operate in the UK under full regulation. Existing businesses face a 28 February 2027 application deadline to benefit from transitional arrangements that let them continue operating while their applications are assessed, with the new regime taking full effect on 25 October 2027. Firms that cannot demonstrate they meet the FCA's standards on consumer protection, safeguarding, market integrity and financial resilience will not be authorised to operate in the UK market.

Frequently Asked Questions

When did the FCA crypto authorisation gateway open?

The FCA opened its authorisation gateway on 30 September 2026, allowing firms to apply for permission to carry on the new regulated cryptoasset activities created by the Financial Services and Markets Act 2000 (Cryptoassets) Regulations 2026. Firms can apply through FCA Connect for Part 4A permission.

What is the deadline for crypto firms to apply for FCA authorisation?

Firms intending to continue operating in the UK should apply by 28 February 2027, ahead of the new regime coming into force on 25 October 2027. The FCA has encouraged firms to apply as early as possible rather than treating the February date as a target.

Can existing UK crypto firms keep operating while their application is assessed?

Yes. Existing firms that apply during the application period can continue providing cryptoasset services, including taking on new business, while their application is assessed if a decision has not been made before the new regime comes into force on 25 October 2027, under statutory transitional provisions.

Does FCA registration under the Money Laundering Regulations carry over to the new regime?

No. A crypto business currently registered with the FCA under the Money Laundering Regulations will not automatically receive a Part 4A permission to conduct the corresponding activity from October 2027. Existing regulatory status does not automatically migrate into the new regime.

Do overseas crypto firms fall under the UK's new crypto regime?

Potentially. A firm whose principal place of business is outside the UK may still fall in scope where it has UK employees or agents undertaking regulated dealing or arranging functions, or operates through substantive UK-based operations, which could include UK servers, UK-targeted marketing or bank accounts.

Sources