Hardware Crypto Wallet Sales Decline in Russia as Currency Restrictions Eased
Following this year’s surge following the invasion of Ukraine, Russian users’ interest in hardware wallets that offer cold storage of cryptocurrencies is shrinking. A study mentioning important markets claims that the sales volumes of these devices have almost been cut in half.
Russian demand for cold storage wallets declines after surge in spring
Russian stores that sell Bitcoin hardware wallets are currently overstocked, according to market participants who spoke to the country’s leading trade publication, Kommersant. Indeed, earlier this year, when Moscow decided to intervene militarily in neighboring Ukraine, demand for these products exploded.
Many Russians sought to buy a cold storage device in the spring due to the growing number of sanctions related to the situation in Ukraine and currency restrictions imposed by the Bank of Russia. When some Russians moved abroad, they also took their cryptocurrency savings.
According to the data, sales of hardware wallets on the Ozon and Wildberries markets exceeded 16.5 million rubles (over $275,000) in May, setting a new record high. In August, the silver fell to less than 8 million rubles (about $135,000), a reduction of 50%.
According to a representative of Ozon, dubbed “the Amazon of Russia”, the number of items sold increased more than fivefold in the first half of 2022 compared to the same period last year.
Sales peaked in March, according to online retailer M.Video-Eldorado. Citilink, an online technology retailer, launched a Tangem hardware wallet in late June, and sales peaked in July.
According to Roman Nekrasov, founder of the ENCRY Foundation, which represents IT companies providing services to the blockchain and IT industries, the drop occurred following the Central Bank of Russia’s reduction of its restrictions. on international money transfers. The specialist added that “those who wanted to transfer assets abroad have most certainly already done so”.
The use of cryptocurrency Wallets are in no way prohibited by current Russian legislation because cryptocurrencies have yet to be fully regulated, according to the report, which quotes Pavel Ganin, a partner at law firm Alegal. The demand for hardware wallets will increase again as cryptocurrency markets mature, according to Aaron Chomsky, head of investment section at ICB Fund.