The government of Russia has submitted a draft bill to the State Duma that would introduce criminal liability for providing cryptocurrency-related services without proper regulatory approval or licensing.
The proposed legislation seeks to amend the country’s legal code to tighten oversight of the digital asset sector.
If enacted, individuals and entities offering unlicensed crypto services, including exchanges, brokerage operations, and payment solutions, could face criminal prosecution.
The move reflects Russia’s ongoing effort to formalize its approach to cryptocurrencies while maintaining strict control over their domestic use.
Authorities have long expressed concerns over the risks associated with unregulated crypto activities, including fraud, money laundering, and capital flight.
Under the proposed framework, only authorized institutions operating within a regulated environment would be permitted to provide crypto-related services.
The bill is expected to define specific penalties, though details regarding fines or potential prison terms may evolve as the legislation progresses through parliamentary review.
Russia’s stance on digital assets has been notably complex. While the country has explored using cryptocurrencies for cross-border settlements and sanctions mitigation, it continues to restrict their use in everyday domestic transactions.
This dual approach highlights the government’s intention to leverage blockchain technology while limiting uncontrolled market activity.
Industry participants are likely to face increased compliance requirements if the bill becomes law. Companies operating in or targeting the Russian market may need to obtain licenses, strengthen internal controls, or reconsider their presence altogether.
