Russia delays crypto exchange prison-term bill until after State Duma elections

Russia’s proposed criminal penalties for illegal crypto exchange will now be handled by the next State Duma, according to Anatoly Aksakov, head of the lower house’s financial markets committee. For PSPs and crypto businesses, the key point is simple: the rules are still moving, but the direction is toward compulsory use of licensed entities and away from direct peer-to-peer dealing.

1. Aksakov said the bill on criminal liability for illegal cryptocurrency exchange will be considered in its second and third readings by a new State Duma. The current spring session ends on 27 July, while deputies are expected to be away in August and September before the election vote, so he pointed to the autumn session as the earliest realistic window.
2. He attributed the delay to the penalties section of the bill, saying it “requires a careful approach.” In an interview with RBC radio, Aksakov said the next State Duma would review all arguments and adopt “balanced wording” so that “honest market participants” can keep working while tougher punishment is imposed on those using crypto for illegal transactions.
3. Aksakov said there were no substantial objections to the bill. The Supreme Court submitted comments, but he described them as mainly legal-technical and said they would be taken into account when the draft is revised.
4. The proposed punishments are said to mirror those already used on the traditional financial market. Aksakov said the main test for illegal crypto circulation is operating without companies licensed by the Bank of Russia. He also said the authorities are still discussing provisions affecting individuals, but the current principle is that Russians will be allowed to buy and sell crypto only through organizations in the Central Bank’s registry, not directly with each other; otherwise, criminal liability would apply.
5. The draft, approved in first reading in early July, provides for fines and prison terms of up to seven years for organizers of illegal crypto circulation. The criminal-liability provisions are set to take effect only on 1 July 2027. In parallel, the government bill “On Digital Currency and Digital Rights,” which would impose tighter state control over crypto transactions, has also been delayed; the vote in the State Duma election is due to finish on 20 September.