2 weeks ago
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Key Takeaways
- Russia is introducing criminal liability of up to 7 years for unlicensed crypto services.
- All exchanges must obtain a Central Bank license by July 2026 or face prosecution.
- The state criminalizes private crypto use while simultaneously deploying it to evade Western sanctions.
- Russia’s Supreme Court has already flagged the penalties as “premature”.
If passed, the new Article 171.7 of the Criminal Code will make unlicensed “organization of digital currency circulation” a criminal offense carrying up to 4 years in prison for standard violations and up to 7 years when organized groups are involved or when damages exceed 13.5 million rubles (roughly $177,000).
Fines range from 100,000 to 1 million rubles depending on severity, while the threshold for “large-scale” violations is set at 3.5 million rubles (around $46,000). The bill does not stand alone – it functions as the criminal enforcement layer of a broader regulatory framework scheduled to take effect in two phases: Jul...
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