Russia Proposes Up to 7 Years Prison for Unlicensed Crypto

Russia’s government has sent a draft law to the State Duma that would jail unlicensed crypto operators for up to seven years.

**TL;DR** The proposal introduces fines of 100,000 to 300,000 rubles for individuals and up to seven years’ imprisonment, five years of compulsory servitude, and fines of up to one million rubles for organized groups. Losses exceeding 3.5 million rubles are classified as major damage, while those over 13.5 million rubles are deemed particularly serious.

**Context** Officials say the bill is part of a broader effort to increase transparency in the digital currency market and reduce fraud, money laundering, and other financial crimes. By requiring licenses for crypto exchanges, wallet providers, and token issuance platforms, the state aims to bring all service providers under regulatory oversight. The move follows years of mixed signals from Moscow on crypto policy and signals a stricter enforcement approach.

**Key Facts** Individuals caught operating without a license could face fines ranging from 100,000 to 300,000 rubles. Organized groups involved in unlicensed crypto activities may receive up to seven years in prison, up to five years of compulsory servitude, and fines of up to one million rubles. Under the draft law, losses above 3.5 million rubles constitute major damage, and losses above 13.5 million rubles are considered particularly serious.

**What It Means** If enacted, the law would raise the legal risk for anyone offering crypto services without state approval, potentially pushing businesses to seek licenses or exit the market. The damage thresholds could influence how prosecutors classify cases, affecting sentencing severity. Industry participants may need to adjust compliance programs to avoid criminal exposure.

Watch for the State Duma’s debate and vote on the bill, which will determine whether these penalties become law.