Unregistered operators could face fines of up to $4,000 and prison sentences of up to four years.
Crypto News
Russia's State Duma received a draft law on Friday that would make operating an unlicensed crypto service a criminal offense. The bill targets any individual or entity organizing the circulation of digital currencies without prior approval from the Bank of Russia.
Unregistered operators could face fines of up to $4,000 and prison sentences of up to four years. Those penalties apply to individuals acting alone.
Members of an organized group face harsher consequences. The bill sets out sentences of up to seven years in prison or compulsory labor of up to five years for group offenses. Courts could also impose a separate financial penalty of up to 1 million rubles, roughly $13,100, or an equivalent portion of the convicted person's income over a period of up to five years.
The legislation builds on a broader package introduced in March. That earlier set of bills proposed criminal liability specifically for unlicensed Bitcoin miners. The new draft expands the scope to cover any unregistered digital asset service provider.
Russia's Supreme Court responded critically to the proposal. It said the bill lacks "reasoned justification" for imposing criminal liability at this stage. The court described the measure as "premature" until the country's pending Digital Currency and Digital Rights law comes into force, currently scheduled for July.
The Supreme Court's objection centers on legislative sequencing. Enforcing criminal penalties before the foundational law takes effect could create legal inconsistencies across the regulatory framework. The government has not publicly addressed that concern.
If the bill passes, the Bank of Russia would gain formal authority to license and oversee entities involved in digital currency circulation. That would give the state a direct enforcement mechanism over a sector that has largely operated outside structured oversight.
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