Sales of Hardware Crypto Wallets Decline in Russia With Easing Currency Restrictions

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Interest in hardware wallets allowing cold storage of cryptocurrencies is waning among Russian users after this year’s increase following the invasion of Ukraine. According to a report quoting major markets, the sales of these devices have almost halved.

Russian demand for cold storage wallets cools off after spike this spring

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Retailers selling hardware cryptocurrency wallets in Russia are now overstocking, market participants have told leading Russian business daily Kommersant. That’s why these products saw explosive demand after Moscow’s decision to launch military intervention in neighboring Ukraine earlier this year.

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In the spring months, many Russians sought to acquire a cold storage device for their crypto assets, amid the extension of sanctions over the Ukraine conflict and currency sanctions imposed by the Bank of Russia. Some Russian citizens relocating to other countries also took their savings in crypto with them.

Hardware wallet sales on the Ozone and Wildberry marketplaces reached a record high of 16.5 million rubles (over $275,000) in May, according to data compiled by the Moneyplace analytics service. In August, the figure fell by half, falling below 8 million rubles (less than $135,000).

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A spokesman for Ozone, known as the “Amazon of Russia”, said the number of units sold increased more than five times in the first half of 2022 compared to the same period last year. Sales peaked in March, e-commerce platform M.Video-Eldorado added. Online tech store Citilink launches a hardware wallet developed by Tangamo in late June and its sales reached their highest level in July.


Roman Nekrasov, founder of the ENCRY Foundation, which represents IT companies providing services in the field of blockchain and technological innovations, commented that the decline was due to the easing of restrictions on cross-border currency transfers by the Central Bank of Russia. Moreover, “those who wanted to transfer property abroad, most likely, have already done so,” commented the expert.

The sales volume was also affected by the declining cost of crypto wallets, against the backdrop of lower demand and appreciation of the US dollar. According to estimates from MoneyPlace, the average price of SafePal products fell three-fold between April and September, with Ledger and Trezor down two-fold, while Tanzem lost a quarter in price. Wildberries confirmed the trend.

The use of crypto wallets is not restricted in any way by current Russian law as cryptocurrencies are not yet widely regulated, the report notes, quoting Pavel Ganin, partner at the Etlegal law firm. Aaron Chomsky, Head of Investments at ICB Fund, believes that the demand for hardware wallets can be expected to improve with the future recovery of crypto markets.

Do you agree that sales of cold storage equipment in Russia will rise again if the crypto markets improve? Share your expectations in the comment section below.

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Credit : news.bitcoin.com

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