Russia’s government has submitted a draft law to the State Duma proposing criminal liability for individuals and entities offering cryptocurrency services without official registration. The legislation seeks to amend the country’s legal code to require businesses involved in organizing digital currency circulation to obtain approval from the Bank of Russia before operating.
Under the proposed rules, individuals providing unlicensed crypto services could face fines of up to $4,000 and prison sentences of up to four years. The bill outlines harsher penalties if violations involve organized groups or large-scale financial damage, including compulsory labor for up to five years or imprisonment for up to seven years. Authorities also proposed an additional penalty of up to 1 million rubles (about $13,100) or an amount equal to a convicted person’s income over a five-year period.
Supreme Court Raises Concerns as Related Crypto Issues Emerge
The draft law follows a package of proposals introduced in March that targeted illegal cryptocurrency mining activities. However, the Supreme Court of Russia has expressed reservations, stating the bill lacks “reasoned justification” for criminal penalties and describing the measure as premature until Russia’s Digital Currency and Digital Rights law takes effect in July. If approved, the legislation would significantly expand government oversight of the digital asset sector.
Meanwhile, cybersecurity risks continue to affect the industry. The Russia based exchange Grinex recently suspended trading after losing more than 1 billion rubles (approximately $13.7 million) in a cyberattack believed to involve entities from hostile states. The company reported the incident to law enforcement agencies and filed a criminal complaint as investigations continue.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.