Web3: As Russia's new crypto regulations approach, hardware wallet sales double

Russian consumers' demand for hardware crypto wallets increased significantly in the first half of 2026. Sales data disclosed by two major retailers show that, ahead of a more comprehensive crypto regulatory framework in Russia, market interest in self-custody devices is rising.

Sales growth reported by both retailers

M.Video stated that sales of hardware wallets on its platform grew by 107% in the second quarter compared to the first quarter, while revenue rose by 92%, though no specific sales figures were disclosed.

Wildberries has also shown improvement. According to its parent company RWB, cited by Russian media, hardware wallet sales in the first half of 2026 increased by 84% compared to the same period in 2025, with revenue up by 60%.

It should be noted that the two companies use different statistical methods. M.Video uses a quarter-on-quarter comparison, contrasting the second quarter with the first, while Wildberries uses a year-on-year approach, comparing the first half of 2026 to the same period in 2025.

Another change is in pricing. The average price of hardware wallets on the Wildberries platform fell by 13% to 7,900 rubles. M.Video has expanded its range of related products. Neither retailer explained the direct reasons for the rebound in demand.

New Russian regulations to take effect in September

The main function of hardware wallets is to store the private keys needed to control crypto assets on dedicated devices instead of online services, thereby reducing exposure risk.

However, current Russian law does not prohibit non-custodial wallets. Local media, citing legal experts, indicated that privately holding and using such wallets in itself is not illegal. But Russia has limited withdrawals from domestic digital custodians to personal wallets, and this transitional arrangement will last until July 1, 2027.

After the transition period ends, crypto transactions will, in principle, need to be carried out through regulated entities, and banks must also refuse to process related transactions that fall outside this framework. Meanwhile, Russia's wider crypto regulatory regime is expected to come into effect on September 1.

According to the framework previously disclosed by the Russian central bank, the new system will allow regulated exchanges and digital custodians to operate; some retail investors, after passing a test, will also be allowed to purchase more liquid crypto assets through a single intermediary up to a limit of 300,000 rubles per year. The domestic ban on crypto payments in Russia will remain in place.

Self-custody cannot eliminate all risks

Although hardware wallets are generally considered self-custody tools, this does not mean that Russia's withdrawal restrictions can be bypassed, nor does it eliminate security risks arising from device, backup, and seed phrase management.

On July 30, Coinkite disclosed a flaw in Coldcard firmware that weakened the security of seed phrase generation. Reports stated that this issue has already resulted in estimated losses exceeding $116 million. For Russian users, the rising demand for hardware wallets reflects a sense of preparation ahead of regulatory changes, but related technical risks remain.