REGULATION | Russia Introduces Crypto Bill With Severe Criminal Penalties and Prison Time for Unregistered Operations

Russian lawmakers have introduced a draft bill that would criminalize the operation of unregistered cryptocurrency services, tightening oversight of the country’s digital asset sector.

Under the proposal submitted to the State Duma, individuals and entities involved in organizing or facilitating crypto transactions without registration with the central bank could face criminal penalties. These include fines of up to about $4,000 and prison terms of up to four years for basic violations.

Harsher punishments are proposed for large-scale offenses or cases involving organized groups. In such instances, penalties could rise to as much as seven years in prison or compulsory labor for up to five years, along with fines of up to roughly $13,100 or equivalent income-based penalties.

The latest proposed legislation also includes criminal penalties for illegal crypto mining.

The bill forms part of a broader push by Russian authorities to bring crypto activity under tighter state control, requiring operators to register with the Bank of Russia and shifting the industry toward licensed intermediaries.

The latest development comes after Grinex, a Russia-linked crypto exchange, was hacked with the company forwarding relevant information on the attack to law enforcement while filing a criminal complaint.

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