Russia to jail illegal crypto exchangers under new bill approved by the State Duma

Russia’s State Duma has approved in first reading a government bill that would criminalize the “illegal organization of digital currency circulation,” including crypto exchange without registration in the state register of exchangers and without a licence. For PSPs and crypto businesses, the practical message is simple: the state wants all crypto exchange activity routed through licensed financial organizations.

1. The draft law introduces criminal liability for operating an illegal crypto exchange in Russia. The bill was submitted by the government and says illegal exchange means exchange without registration in the state register of exchangers and without a licence.
2. For organizers of illegal exchangers, the proposed penalties include a fine of 100,000 to 300,000 rubles or the amount of income for a period of one to two years. As an alternative, a court could order forced labor or imprisonment for up to four years.
3. If a person is sentenced to prison, the court may also add an additional fine of up to 80,000 rubles or the amount of income for the previous six months.
4. Where the court finds that the illegal exchange was organized by a group, or produced especially large income / especially large damage of 3.5 million rubles or more, the penalty can rise to five years in prison and a fine of up to 1 million rubles or the amount of income for five years.
5. The bill says these penalties will take effect on 1 July 2027. A separate government bill on crypto circulation control, which the State Duma is due to consider by September, requires all crypto exchange in Russia to run through financial institutions with the relevant licence.