Russia moves toward a licensed crypto market while drafting fines and prison terms for off-market trading

Russia is working on a crypto regulation bill that would create a domestic market with licensed exchanges, brokers, and exchangers under Central Bank oversight. At the same time, the State Duma has already passed in first reading amendments that would punish crypto activity outside that controlled framework, which is the part payment providers and exchanges will want to read twice.

1. The main crypto bill has been delayed. It was expected by the end of June and set to take effect on 1 July this year, but that did not happen. Anatoly Aksakov, chairman of the State Duma Committee on the Financial Market, said the draft was postponed to the beginning of autumn because of prolonged coordination with government agencies. The second and third readings are now tentatively scheduled for 21 July, and the law itself may take effect on 1 September this year.
2. The plan is to build an internal, state-controlled crypto trading circuit through licensed brokers, exchanges, and exchangers. But that infrastructure will only start operating a year later, from 1 July 2027. In other words, Russia wants the legal market framework first, and the working market second.
3. Before that market opens, lawmakers are already defining the penalty regime for activity outside it. The Duma has approved in first reading amendments to the Administrative Code and the Criminal Code that would introduce liability for unlawful crypto circulation.
4. Under the proposed Criminal Code article 171.7, organizing illegal crypto circulation that causes “large” damage to citizens or the state, or generates income, would carry a fine of 100,000 to 300,000 rubles, compulsory labor, or imprisonment for up to four years with an additional fine of up to 80,000 rubles. These measures would start on 1 July 2027 if the amendments are adopted in their current form.
5. For the same offense committed by a group, or where the damage is “especially large” at 13.5 million rubles and above, the proposed punishment rises to compulsory labor for up to five years or imprisonment for up to seven years with a fine of up to 1 million rubles. The jail time is aimed at organizers of the circulation itself — for example, those providing services to buy or sell the currency.

There is also an administrative angle for retail distribution. The draft crypto regulation bill would allow unqualified investors to make transactions up to 300,000 rubles a year. If an intermediary lets such an investor exceed that limit, the intermediary faces a fine: 30,000 to 50,000 rubles for officials and 700,000 rubles to 1 million rubles for legal entities.