Proposed legislation in Russia aims to impose criminal repercussions for crypto services that operate without regulatory approval. The draft bill, submitted to the State Duma, specifically targets entities involved in digital currency activities lacking a license from the central bank, which could lead to fines of up to $4,000 and prison sentences of up to four years.
If the offense is committed by an organized group or results in substantial financial damage, penalties could escalate to compulsory labor for five years or imprisonment for a maximum of seven years. Additionally, fines could reach up to 1 million rubles (approximately $13,100) or be equivalent to the convicted individual’s income over five years.
This initiative follows earlier proposals from March that included penalties for illegal crypto mining, but the current legislation emphasizes fines and imprisonment for unregistered digital asset services. The Supreme Court of Russia has expressed concerns regarding the bill, suggesting it lacks justification and labeling it as “premature” until the anticipated "Digital Currency and Digital Rights law" is enacted in July.
In a related note, the Russian crypto exchange Grinex recently suspended trading after suffering a hack that resulted in losses exceeding 1 billion rubles (around $13.7 million). The exchange is currently under sanctions and has reported the incident to law enforcement.