In a recent development, the Russian government has introduced a bill before its lower legislative house to criminalize the operation of unregistered crypto services in the country.
Unlicensed Crypto Operators To Face Up To Four Years In Prison
In a bill proposal to the lower house of the Federal Assembly of Russia, the State Duma, Russian lawmakers proposed criminal liability for entities engaging in activities related to the organization and circulation of cryptocurrencies and other digital assets without regulatory approval from the country’s central bank.
The draft law’s explanatory note read:
In accordance with the proposed Article 1717, it is proposed to introduce criminal liability for carrying out activities related to the organization of digital currency circulation without registration 0037822-UCH-2026 (7.1) or without a special permit (license) in cases where such a permit (license) is mandatory.
According to this proposed bill, individuals could incur as high as $4,000 in fines and get a prison sentence of up to four years (or more severe penalties if part of an organized group) for running an unlicensed digital asset operation. “The same act committed by an organized group, or involving the infliction of damage or the extraction of income on a particularly large scale, would be punishable by compulsory labor for up to five years or imprisonment for up to seven years,” the draft proposal said.
If signed into law, the ensuing criminal cases will be investigated by investigators from the Investigative Committee and the Federal Security Service (FSB). It is worth noting that the Supreme Court (SC) did not accept the bill in its current form, stating the lack of a “reasoned justification” in the explanatory note for criminal penalties for illegal crypto circulation.
Russia Continues Crypto Legislation Regime In 2026
This proposed legislation comes after a host of bills were presented in March, including criminal penalties for entities involved in illegal crypto mining and mining infrastructure operators. Notably, the Russian government approved signed new legislations, allowing retail access only through regulated intermediaries.
As Bitcoinist reported, retail “non-qualified” investors are subjected to an annual purchase limit of about ₽300,000 (around $3,700) per broker or intermediary, while “qualified” investors are required to pass tests and transact only through authorized platforms. Meanwhile, banks were banned from process payments to unlicense foreign platforms.
While these new Russian laws (passed and proposed) seems to put the matter of regulatory clarity to bed, their seemingly stringent approach has been called into question in the crypto crowd over the past few months.
from Bitcoinist.com https://ift.tt/a6iw2ef
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