Russia targets unregistered crypto services with prison threat

Russia plans to criminalize unregistered crypto services, requiring providers to register with the central bank or face fines and prison. The Supreme Court urges waiting for broader digital currency laws.

Russian lawmakers have proposed a bill mandating that all crypto service providers—including individuals, companies, and platforms—register with the Bank of Russia. Failure to comply could result in criminal penalties. Individuals may face fines up to $4,000 and up to four years in prison, while organized groups could receive up to seven years imprisonment and fines of one million rubles (about $13,100). The legislation targets any entity involved in organizing digital currency circulation without central bank approval. Its stated goal is to strengthen state control over digital assets, aiming to combat money laundering and sanction evasion. However, the Supreme Court has criticized the bill's timing, calling the penalties premature. The court suggests enforcement should wait until the broader Digital Currency and Digital Rights law takes effect in July. The registration process and compliance requirements remain unclear, creating uncertainty for crypto operators in Russia.