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Russia introduces bill to criminalize unregistered crypto services
TL;DR
Russia's government has submitted a bill to criminalize unregistered crypto services, imposing fines and prison time for non-compliance. Individuals could face fines up to $4,000 and up to four years in prison without regulatory approval.
Key points
- Russia's government submitted a bill to criminalize unregistered crypto services
- Fines up to $4,000 and prison sentences up to four years proposed
- Maximum fine of 1 million rubles or 13,100 dollars for violations
Russia’s government submitted a bill to its parliament’s lower house in an effort to amend the country's legal code to attach criminal liability for crypto services offered without regulatory approval or licensing.
In a draft law sent to the State Duma on Friday, Russian lawmakers proposed that entities "carrying out activities related to the organization of digital currency circulation,” that operate without a license from Russia’s central bank, could be subject to criminal liability.
Without registration with the Bank of Russia, individuals could face up to $4,000 in fines and up to four years in prison, or more severe penalties if part of an organized group.
“The same act committed by an organized group, or involving the infliction of damage or the extraction of income on a particularly large scale, would be punishable by compulsory labor for up to five years or imprisonment for up to seven years,” the bill’s text said.
The bill also proposes a “fine of up to 1 million rubles [$13,100] or an amount equal to the convicted person’s salary or other income for a period of up to five years.”
The draft law followed a package of bills initially proposed in March that included criminal penalties for illegal crypto miners, but the most recent legislation included details on fines and potential prison time for any unregistered digital asset services.
According to Russian media outlet RBC, the country’s Supreme Court said that the crypto bill lacks “reasoned justification” for criminal penalties.
The court said that the measure was “premature” until Russia enacted its “Digital Currency and Digital Rights law,” expected to go into effect in July. If the bill passes it would give Russia’s government more control and oversight over the crypto industry.
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Grinex, a Russia-based crypto exchange currently being sanctioned, halted trading for users on Thursday after losing more than 1 billion rubles — about $13.7 million — in a hack it suspected was carried out by “entities of hostile states.”
Q&A
What penalties are proposed for unregistered crypto services in Russia?
The proposed penalties include fines up to $4,000 and prison sentences of up to four years for individuals operating without a license.
What is the maximum fine under the new Russian crypto bill?
The bill proposes a maximum fine of up to 1 million rubles, equivalent to approximately $13,100.
How does the bill affect organized groups offering crypto services in Russia?
Organized groups could face harsher penalties, including compulsory labor for up to five years or imprisonment for up to seven years.
