Russia Threatens 7 Years Hard Labour for Unlicensed Crypto Operators
The Kremlin published a draft bill that would criminalize operating crypto exchanges without a central bank license. The law targets ₱38.71 billion ($648 million) in daily unregulated trading volume and aims to force Russian crypto traders through licensed commercial bank apps.
Key Takeaway
Russia escalates crypto crackdown from administrative fines to criminal jail time, targeting ₱38.71 billion ($648 million) daily black market.
Russian unregulated crypto markets process ₱38.71 billion ($648 million) in daily trading volume, but a new Kremlin proposal aims to shut them down with criminal penalties.
The draft bill, published on the State Duma's website, makes organised cryptocurrency selling without a central bank license a criminal offense. Larger exchange operators face between 5 and 7 years in jail, with the maximum penalty being hard labour. Ordinary violators get up to 4 years behind bars and fines ranging from ₱77,667 ($1,300) to ₱238,976 ($4,000), while bigger operators can be fined up to $13,000.
Moscow plans to force most Russian crypto traders to buy and sell through commercial bank apps, eliminating grey-area exchanges. The government said the law would introduce criminal liability for carrying out activities related to the organisation of digital currency circulation without registration or a special permit. The goal is to boost transparency in crypto markets and reduce the risk of financial crime.
Russia's Supreme Court already criticised the proposal, calling it premature until the Digital Currency and Digital Rights law takes effect in July. The court said the bill lacks reasoned justification for criminal penalties. Prime Minister Mikhail Mishustin said the regulations will create Russia's own infrastructure for digital currencies and curb anonymous transactions.
Cifra Markets analyst Alexey Korolenko predicted many Russian exchanges will close soon due to the new rules. An earlier proposal unveiled on April 1, 2026 would have required Russian residents to notify the Federal Tax Service of overseas wallet openings within one month and report all transactions on foreign exchanges.
Both the current bill and the April proposal would come into force on July 1, 2027, if approved by the State Duma and Presidential offices.
This article was written based on reporting from Dlnews.
