- Duma received a bill to criminalize operating unlicensed crypto services.
- Individuals could face up to $4,000 fines and four years in prison; group offenses carry harsher penalties.
- The draft expands March measures that targeted unlicensed miners to all digital asset service providers.
- Russia's Supreme Court called the proposal premature ahead of a July law on digital currency.
Russia’s State Duma has received a draft bill that would make operating an unlicensed cryptocurrency exchange and token services a criminal offense, widening a regulatory push that began earlier this year with penalties targeting unauthorized Bitcoin miners.
Under the proposed legislation, individuals offering crypto services without the Bank of Russia’s authorization face fines of up to 270,000 rubles (roughly $4,000) and up to 4 years in prison.
Operators acting within organized groups face considerably harsher exposure: up to seven years imprisonment combined with penal labor, compulsory labor periods of up to five years, or fines reaching one million rubles (approximately $13,100), with an alternative penalty tied to five years of personal income.
The bill extends the March legislation that introduced criminal liability for unlicensed mining. Its scope now covers the full range of unregistered digital asset service providers, exchanges, custodial platforms, and crypto wallet operators alike. If enacted, the Bank of Russia would acquire formal authority to issue licenses and oversee the country’s digital currency circulation market.
READ MORE: AAVE, LayerZero, Aerodrome Tokens Lead Losses Amid a Crypto Crash
Supreme Court Raises Conflict-of-Law Concerns
The proposal has already drawn significant institutional resistance. Russia’s Supreme Court formally objected to the bill, characterizing the criminalization push as premature and unjustified.
The court pointed to a specific legal tension: a separate statute governing digital assets, On Digital Currency, Digital Rights and Fundamentals of Ensuring Operational Security in Informational Space, has not yet taken effect, with a July implementation date set. Criminalizing activity within a regulatory framework that does not yet legally exist, the court argued, risks creating irreconcilable conflicts in the legal code.
The government has not publicly responded to the Supreme Court’s objections. Market participants will be watching whether the Duma advances the bill through all legislative stages and how lawmakers address the court’s timing concerns.
Central to that question is how the proposed licensing regime would align with the forthcoming digital currency law, particularly around enforcement coordination and the Bank of Russia’s jurisdictional authority once both statutes are in effect.
READ MORE: Solana Price Risks Liquidation Cascade If $83 Floor Cracks This Week
