Russia plans criminal penalties for illegal crypto exchanges, up to five years in prison

CoinFeed July 9 news, according to Bits.media, the Russian State Duma passed in first reading the government-submitted bill on criminal liability "On Illegal Organization of Digital Asset Circulation", imposing criminal penalties for illegal cryptocurrency exchange activities without state registration and licensing. Under the bill, organizers of illegal exchanges face fines of 100,000 to 300,000 rubles or a penalty equal to one to two years of income, and the court may impose forced labor or up to four years of imprisonment, with an additional fine of up to 80,000 rubles. If committed by an organized group or resulting in particularly large income (over 3.5 million rubles), the maximum penalty is five years of imprisonment and a fine of up to 1 million rubles. The bill stipulates that the penalties will take effect on July 1, 2027. Previously, the government's crypto regulation bill required all Russian crypto exchanges to operate through licensed financial institutions.