Russian government submits bill to criminalize unlicensed crypto-circulation services
The Facts
- The Russian government submitted the draft bill to the State Duma, the lower house of parliament.
- The bill would introduce criminal liability for the unlawful organization of digital-currency circulation or crypto services conducted without registration or a license from the Bank of Russia.
- The proposal targets intermediaries and services related to digital-currency accounting, purchase and sale transactions, exchange, and transfers conducted without Bank of Russia authorization.
- For standard violations, the bill proposes penalties including fines, forced labor, or imprisonment of up to four years.
- For aggravated cases, including offenses committed by an organized group or involving especially large damage, the maximum proposed penalty is seven years in prison and a fine of up to 1 million rubles.
- The explanatory note says the bill is intended to improve transparency in the crypto market and reduce the risk of financial crimes.
- Russia's Supreme Court issued a negative opinion on the bill, saying criminal liability for illegal crypto circulation is premature.
Context
What kinds of crypto activity does the bill cover?
The bill covers the organization of digital-currency circulation without Bank of Russia authorization, including intermediary services for accounting, purchase and sale transactions, exchange of one digital currency for another, and transfers of digital currency Парламентск…,НОВОСТИ Mai….
What penalties are proposed?
In standard cases, the bill proposes fines, forced labor, or prison terms of up to four years; in aggravated cases such as organized-group offenses or especially large damage, penalties could rise to seven years in prison and a fine of up to 1 million rubles kp.ru,Forbes.ru,Реальное вр….
Has the proposal faced any official criticism?
Yes. Russia's Supreme Court gave the bill a negative opinion, saying it is premature to introduce criminal liability for illegal crypto circulation at this stage Interfax.ru,НОВОСТИ Mai….
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