The State Duma of the Russian Federation has adopted in the first reading a government bill introducing criminal liability for the illegal organization of digital currency circulation. This is a landmark event that fundamentally changes the rules of the game for cryptocurrency market participants in the country.
The bill provides for punishment for individuals engaged in cryptocurrency exchange activities without state registration or a special license. A mandatory condition for prosecution is the extraction of large-scale income or causing significant damage to citizens, organizations, or the state as a result of such activities.
Gradation of punishments: from fines to real prison time
The penalties are differentiated depending on the severity of the offense. For illegal crypto exchange on a large scale, a fine of 100,000 to 300,000 rubles or in the amount of the convicted person's income for a period of one to two years is provided. Alternatives may include compulsory labor or imprisonment for up to four years. Imprisonment may be accompanied by a fine of up to 80,000 rubles or in the amount of the convicted person's income for a period of up to six months.
If the act is committed by an organized group or involves causing damage or extracting income on an especially large scale, the punishment is significantly stricter. In this case, compulsory labor for up to five years or imprisonment for up to seven years with a fine of up to 1,000,000 rubles or in the amount of the convicted person's income for a period of up to five years, or without such a fine, may be imposed.
It is important to note that, under the general rule of Chapter 22 of the Criminal Code, large-scale damage or income is considered to be an amount exceeding 3.5 million rubles, and especially large-scale damage or income is considered to be an amount exceeding 13.5 million rubles. Thus, the maximum prison sentence can be up to 7 years.
Who will investigate and when the law will come into force
Simultaneously with the amendments to the Criminal Code, amendments are also being made to the Criminal Procedure Code. Preliminary investigations into cases of such crimes will be conducted by investigators of the Investigative Committee of the Russian Federation and investigators of the FSB of Russia. This underscores the seriousness with which the state intends to approach this issue.
It is expected that all of the listed changes will come into force on July 1, 2027. The bill is part of a large-scale government package aimed at comprehensive regulation of digital currency circulation in Russia.
Cryptalist analytical commentary: This step is a logical continuation of the course towards total regulation of the crypto market. Russian authorities are making it clear that the era of the "Wild West" for cryptocurrencies in the country is coming to an end. Market participants, especially P2P exchangers and illegal platforms, should prepare for drastic changes. On the one hand, this could lead to an outflow of business into the shadows or abroad, but on the other hand, it will create a legal framework for legitimate players, which in the long term could increase trust in the industry.