Russia Cracks Down on Unlicensed Crypto Services with New Legislation

Russia is taking steps to regulate its growing cryptocurrency market with the introduction of a new bill that targets unlicensed crypto services. According to the proposed law, entities involved in digital currency circulation would be required to register with the Bank of Russia.

The bill would impose fines and imprisonment on individuals and firms that fail to comply, with harsher penalties for coordinated or large-scale offences. For instance, those operating without registration could face fines of up to $4,000 and prison sentences of up to four years.

The legislation also includes fines of up to 1 million rubles ($13,100) or an amount equivalent to a person's income over five years for non-compliance. This significantly raises the financial risk of not registering with the Bank of Russia.