How Cryptocurrency Transfers Abroad Will Be Organized Starting September 1

Starting September 1, cryptocurrency transfers abroad will be available to individuals, sole proprietors, and companies engaged in foreign economic transactions, announced Alexey Korolenko, CEO of the crypto broker Cifra Markets. However, within Russia, cryptocurrency settlements will still remain prohibited.

Who Will Be Allowed to Transfer Digital Currency Abroad

The new order will be controlled by the Bank of Russia. Transfers can be conducted by both qualified and unqualified investors. Cryptocurrency will be used for operations outside the country: for example, for transferring to one's own foreign cryptocurrency wallet or for paying for goods and services at a foreign store.

Such operations can be conducted by individuals, sole proprietors, and legal entities. However, payments in cryptocurrency will not be allowed within the Russian Federation. This specifically pertains to foreign economic activity, explained Alexey Korolenko.

In other words, Russia is not opening its internal market for crypto payments. Money in digital assets can only be utilized in a cross-border context, not as a regular payment system for transactions between Russian participants.

Why Use Cryptocurrency for International Transfers

Cryptocurrency is chosen for international settlements when speed, transfer accessibility, and the ability to avoid a long chain of banking intermediaries are important. This method can be convenient for paying for foreign goods and services, transferring funds to one's own foreign wallet, or settling within the framework of foreign economic activity.

• Speed: the transaction goes through the blockchain, not through several correspondent banks.
• Fees: the final cost depends on the network, platform, and intermediary, but the user sees it before sending.
• Accessibility: a transfer can be sent to a cryptocurrency wallet abroad if the operation complies with the platform's and regulator's rules.

Which Cryptocurrencies Will Be Allowed for Operations

Previously, the Bank of Russia included Bitcoin, Ethereum, and Tether (USDT) in the list of cryptocurrencies available for public circulation on Russian exchanges. At the same time, the regulator set a limit on the purchase of cryptocurrency for unqualified investors.

At the first stage, operations will only be allowed with Bitcoin, Ethereum, and USDT. These assets have already been included by the regulator in the list for public circulation, so cross-border operations will start with them.

• Bitcoin --- allowed for transfers; suitable for operations with the most recognizable crypto asset, but its price can fluctuate significantly.
• Ethereum --- allowed for transfers; used in a developed blockchain infrastructure, with fees depending on network load.
• USDT --- allowed for transfers; this stablecoin is tied to the US dollar, making it more convenient for transactions where fiat currency linkage is important.
• USDC and Litecoin --- are not included in the list at the first stage.

The currency of settlements does not change the main restriction: cryptocurrency payments are prohibited within the country.

Buying and selling coins will be possible through several types of intermediaries:

• Crypto exchanges --- suitable for buying, selling, and transferring coins to an external wallet, but usually require registration and identity verification.
• Crypto exchangers --- convenient for exchanging digital assets for fiat money and vice versa, but it is important to check the rate, fees, and terms of the deal in advance.
• Brokers --- can accompany operations and assist with buying or selling, but their services also increase the final cost.

At the same time, participants in organized cryptocurrency trading have not yet been determined, notes asset manager and founder of the stable cryptocurrency platform Grigory Klumov. Therefore, there is still no clarity on how international platforms like Binance or online digital currency exchange services will fit into the new scheme.

What Users Will Need

To buy or sell cryptocurrency, you will need a cryptocurrency wallet. Before the transaction, the user must:

• Obtain a cryptocurrency wallet.
• Verify their identity.
• Pass testing on the Russian platform through which the transaction is made.

The next steps are as follows: choose a platform with clear fees and rules, register, undergo verification, fund the account, select the appropriate cryptocurrency from the allowed ones, and purchase it for subsequent transfer.

This operation will not resemble a typical bank transaction. Digital assets are transferred via blockchain, and access to transactions will depend on the rules of Russian platforms and regulatory requirements. It is still difficult to say how this will work in practice.

How to Transfer Cryptocurrency and Withdraw It to Regular Money

Transfers can be made in several ways, each suitable for different tasks.

• Through an exchange: the user buys cryptocurrency on the platform, specifies the recipient's wallet address, and sends the coins. Pros --- user-friendly interface and transaction history, cons --- verification requirements and possible limits.
• Through a personal wallet: the user stores the assets themselves and sends them directly to another address. Pros --- more control over funds, cons --- any mistake in the address can lead to loss of money.
• Through a P2P platform: the buyer and seller agree on an exchange through a service that helps facilitate the transaction. Pros --- flexibility in payment methods, cons --- risk of unscrupulous counterparties and the need to carefully check the terms.

To convert cryptocurrency into fiat money, it is usually sold through an exchange, exchanger, or P2P platform, and then the user receives rubles, dollars, or another currency in an available manner. Before withdrawing, it is important to consider identity verification requirements, platform limits, exchange rates, and fees.

To transfer money from the USA to Russia via cryptocurrency, the logic will be similar: the sender buys an allowed digital asset on an accessible platform, transfers it to the recipient's wallet, and the recipient then sells the asset through an appropriate service and withdraws fiat money. In practice, much will depend on the rules of the platforms, requirements for residents of the USA and Russia, identity verification, and available withdrawal methods.

Fees, Timing, Security, and Risks

The cost of the transfer consists of the blockchain network fee, the exchange's, exchanger's, or broker's fee, as well as the difference between the buying and selling rates. The higher the load on the network and the more complex the route for converting to fiat money, the more expensive the operation may become.

The transfer time depends on the chosen cryptocurrency, network, and the number of confirmations required by the platform or recipient's wallet. Bitcoin, Ethereum, and USDT can pass at different speeds, so it is worth checking the conditions of a specific service before sending.

• Check the wallet address before sending: erroneous transactions on the blockchain are usually irreversible.
• Look at the fees before confirming the operation, especially when transferring and subsequently withdrawing to fiat money.
• Consider volatility: Bitcoin and Ethereum can significantly change in price between buying, transferring, and selling.
• Beware of fraud on P2P platforms and exchanges, check the service's reputation and transaction terms.
• Remember regulatory risks: from September 1, cross-border operations are allowed for individuals, sole proprietors, and companies in foreign economic activity, but cryptocurrency settlements within Russia remain prohibited.