Russia Delays Crypto Prison Law Until After Elections

Russia's crypto prison law has hit a snag as its second and third readings have been delayed until after the September elections. The bill, which carries sentences of up to seven years for illegal crypto exchange, was passed in its first reading in early July but will not be finalized before parliamentary elections.

The penalties are structured by scale, with operating an unlicensed exchange carrying fines of 100,000 to 300,000 rubles or an income equivalent, and up to four years imprisonment as an alternative. If an operation is run by an organized group or proceeds exceed 3.5 million rubles, sentences rise to five years with fines of up to one million rubles.

Anatoly Aksakov, head of the Duma Committee on Financial Markets, cited unresolved questions around how penalties should be calibrated as the reason for the delay. The State Duma's spring session closes on 27 July, and deputies will take recess through August and September before elections, making autumn the earliest realistic window.

The law is set to come into force in July 2027, giving the industry time to adapt to the new regulations. The broader regulatory framework includes provisions that would permit Russians to buy and sell cryptocurrency only through Central Bank-registered entities, with direct trades between individuals outside licensed infrastructure carrying criminal liability.