Russia Moves to Penalize Unregistered Crypto Services

The Russian government is looking to tighten its approach to the cryptocurrency market. A new bill has been submitted to the lower house of parliament that would introduce criminal liability for providing crypto-related services without proper registration.

Under the proposal, both individuals and companies dealing with digital assets would be required to obtain approval from the Central Bank of Russia. Operating without registration could result in fines of up to $4,000 and prison sentences of up to four years. Harsher penalties would apply in cases involving organized groups or significant profits, including up to seven years in prison or compulsory labor for up to five years.

In addition, substantial financial penalties may be imposed—up to 1 million rubles (around $13,100), or the equivalent of up to five years’ worth of the offender’s income.

These measures are part of a broader regulatory package Russia has been developing since March. Earlier proposals included penalties for illegal crypto mining, while the current draft expands liability to cover all unregistered services related to digital assets.

However, not everyone supports the proposed changes. According to the Russian outlet RBC, the Supreme Court of Russia has stated that the bill lacks sufficient justification for introducing criminal penalties. The court also suggested that such regulations may be premature until a comprehensive law on digital currency and digital rights—expected in July—comes into force.

Despite ongoing legal uncertainty surrounding the crypto market, recent government actions indicate a clear direction. Russia is gradually working toward establishing more structured rules for digital assets and increasing oversight of the sector. Upcoming legislative proposals suggest that the state aims to build a coherent legal framework for the digital market rather than leaving it unregulated.