Russia Introduces Bill to Criminalize Unlicensed Crypto Services with Up to 7 Years in Prison

Russia’s Crypto Policy Shift and New Enforcement Push

Russia has maintained a highly restrictive stance toward cryptocurrency for years. While the country legalized crypto mining in 2021 and allowed limited use for international trade settlements in 2022–2023, the Central Bank of Russia has consistently opposed retail crypto adoption, citing risks of capital flight, money laundering, and financial instability. Over the past two years, authorities have gradually tightened rules, requiring crypto exchanges and service providers to obtain official licenses and report all transactions.

The latest bill, introduced this week in the State Duma, significantly escalates enforcement. It would criminalize any unlicensed crypto exchange, wallet service, or intermediary activity, with penalties including fines and prison terms of up to 7 years for repeat or large-scale violations. The proposal is widely seen as the government’s strongest move yet to bring the entire crypto sector under full state control and eliminate unregulated operators inside Russia.

Current Rules vs Proposed Bill

Legislative Process and Next Steps

The bill was formally introduced in the State Duma by a group of lawmakers aligned with the Ministry of Finance and the Central Bank of Russia. It is currently at the early proposal stage and must pass multiple readings before becoming law, but analysts expect rapid progress given strong support from Russia’s financial regulators.

This legislation continues Russia’s multi-year strategy of gradually tightening control over the crypto sector. While unlicensed services would become criminal offenses, legally licensed domestic operators and the already-approved uses of crypto for international trade settlements and mining would remain unaffected.

What to Watch Next

• Progress of the bill through the State Duma including committee reviews, amendments, and the final vote timeline in the coming weeks.
• Official responses from major crypto exchanges and platforms that currently serve Russian users.
• Movement of Russian crypto activity whether users and liquidity shift offshore or move to licensed domestic services.
• Potential ripple effects on crypto regulation in other BRICS nations and emerging markets.