Russia Puts Crypto Prison Law On Hold Until After Elections

Russia has put off finalizing its law that would criminalize illegal cryptocurrency exchange until after parliamentary elections conclude on September 20th. The bill, which carries sentences of up to seven years for those organizing large-scale illicit circulation, had passed its first reading in early July and was originally set for final approval by the end of July.

According to Anatoly Aksakov, head of the Duma's Financial Markets Committee, unresolved questions around how penalties should be calibrated have led to the delay. The State Duma will review all arguments during its autumn session, which is the earliest realistic window for second and third readings after deputies take recess through August and September.

The bill targets what Russian authorities define as the illegal organization of cryptocurrency circulation, meaning any exchange conducted outside Central Bank-registered and licensed institutions. Penalties are structured by scale, with operating an unlicensed exchange carrying fines of 100,000 to 300,000 rubles or an income equivalent, along with up to four years imprisonment as an alternative.

Aksakov dismissed concerns that the bill would expose individual peer-to-peer users to criminal charges alongside organized illegal operations. However, provisions specifically affecting individuals are still being negotiated, and a companion bill establishing broader state control over crypto transactions has also slipped.