-
Russia plans to criminalize unlicensed crypto services, with fines and prison terms for violations.
-
Supreme Court warns proposal is premature due to pending digital currency laws and legal gaps.
-
Bill expands regulatory scope, granting central bank oversight across broader crypto activities.
Russia’s State Duma received a draft bill Friday that would criminalize unlicensed crypto services, introducing prison terms and fines for violations. Lawmakers aim to regulate digital currency circulation through the Bank of Russia. However, the proposal has drawn criticism from the Supreme Court over timing, as foundational crypto laws remain pending and unresolved.
Bill Targets Unlicensed Crypto Operations
According to the draft, individuals running unregistered crypto services could face fines up to $4,000 and four-year prison sentences. However, harsher penalties apply when organized groups engage in such activities. In those cases, offenders could receive up to seven years in prison or five years of compulsory labor.
Additionally, courts may impose financial penalties reaching one million rubles, roughly $13,100. These fines can also reflect a portion of income earned over five years. The bill specifically targets any entity facilitating digital currency circulation without central bank approval.
Supreme Court Raises Concerns on Timing
However, Russia’s Supreme Court has criticized the proposal, calling it premature. The court stated the bill lacks sufficient justification for imposing criminal penalties at this stage. It also warned that enforcement before the Digital Currency law takes effect could create legal inconsistencies.
Notably, the foundational legislation is scheduled to come into force in July. Therefore, applying criminal liability beforehand could complicate enforcement frameworks. The government has not publicly addressed these concerns.
Broader Regulatory Push Expands Scope
Meanwhile, this proposal builds on earlier legislation introduced in March targeting illegal crypto mining activities. That earlier package focused on miners and infrastructure operators. Now, the scope expands to include all unlicensed digital asset service providers.
If passed, the Bank of Russia would gain authority to license and oversee crypto-related activities. Investigations would involve the Investigative Committee and the Federal Security Service. As a result, enforcement mechanisms would extend across the broader digital asset sector.
Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to
Disclaimer.
Related Articles
Korean National Tax Service Launches Crypto Tax-Evasion Crackdown in July: Even Self-Custody Wallets and Mixing Services Can Be Traced
According to a report by ZDNet Korea, South Korea’s National Tax Service (NTS) issued on April 15 a procurement notice for a “virtual asset tax evasion response and transaction tracking software,” with plans to complete system selection by the end of May, deploy it in June, and officially launch it in July. The new system will be able to track self-custodied (non-custodial) wallets such as MetaMask and Phantom, and will include “demixing” technology to enforce tax evasion against offenders who use mixers to conceal the flow of funds.
This is the third upgrade to South Korea’s crypto tax investigation tracking system since 2024. In conjunction with new tax legislation that, starting in 2026, will formally bring crypto assets under taxation under the “Other Income” category of the comprehensive income tax, enforcement tools are being upgraded at the same time to improve collection efficiency.
Procurement scope: Chainalysis and TRM
ChainNewsAbmedia1h ago
South Korea's Tax Authority Introduces Crypto Tracking Software to Monitor Tax Evasion, Including Non-Custodial Wallets
Gate News message, April 21 — South Korea's National Tax Service announced on April 15 that it plans to deploy crypto asset tracking software from firms including Chainalysis and TRM Labs to monitor cryptocurrency transactions in real time, trace hidden assets of suspected tax evaders, and combat mo
GateNews1h ago
Sberbank Prepares Crypto Trading Rollout for 110M Users
Sberbank prepares crypto trading and custody services, awaiting regulatory approval to launch for 110M users.
Proposed rules may allow retail access with limits, a shift toward regulated crypto participation in Russia.
Bank built infrastructure and tested services, positioning for fast
CryptoFrontNews1h ago
U.S. CLARITY Act stablecoin bill faces May delay amid bank pushback
U.S. CLARITY Act faces a May delay as banks fight stablecoin yields, clashing with a White House report that says the lending impact is just 0.02%.
Summary
U.S. CLARITY Act's April committee review hangs in the balance as Senate
Cryptonews2h ago
Bank for International Settlements Warns: Stablecoins Are More Like Securities, Redemption Flaws Could Trigger a Bank Run
International Settlements Bank (BIS) Managing Director Pablo Hernández de Cos warned on Monday at a Bank of Japan conference in Japan that the global stablecoin market has surpassed $315.9 billion, but its operating mechanism is closer to investment products such as ETFs rather than true money. The BIS said that if large-scale redemptions occur, it would trigger a chain-reaction effect similar to the run on Silicon Valley Bank in 2023.
MarketWhisper2h ago
Coin Center report: Publishing software code is free speech and should be protected by the First Amendment
The cryptocurrency research and advocacy organization Coin Center published a report on April 20, 2026 (Monday), arguing that writing and publishing cryptocurrency software code is speech protected by the First Amendment to the U.S. Constitution, and proposing a legal framework to distinguish between protected software release conduct and developer conduct that should be regulated.
MarketWhisper3h ago
