Russia’s government has submitted a bill to the State Duma to amend the criminal code to penalize crypto services offered without regulatory approval or a license. The draft law targets entities “carrying out activities related to the organization of digital currency circulation” that operate without a license from the Bank of Russia.
Under the proposal, individuals who offer such services without registering with the central bank could face fines of up to $4,000 and up to four years in prison. The same acts committed by an organized group, or those causing damage or extracting 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 bill also proposes fines up to 1 million rubles (about $13,100) or an amount equal to the convicted person’s salary or other income for a period of up to five years.
The draft follows a package of bills first proposed in March that included criminal penalties for illegal crypto miners; the current legislation adds detailed fines and possible prison terms for any unregistered digital asset services. Russia’s Supreme Court has said the bill lacks “reasoned justification” for criminal penalties and called the measure “premature” until the country’s Digital Currency and Digital Rights law, expected in July, is in effect. If passed, the bill would give the government greater control and oversight over the crypto industry.
Russian crypto exchange Grinex, which is currently under sanctions, halted trading after losing more than 1 billion rubles (about $13.7 million) in a hack it attributed to “entities of hostile states.” The exchange said it forwarded information to law enforcement and filed a criminal complaint.
Cointelegraph is committed to independent, transparent journalism. This article follows Cointelegraph’s Editorial Policy; readers are encouraged to verify information independently.