Russia to Jail Unlicensed Crypto Operators for Up to 7 Years in Major Crackdown

Quick overview

Russia is going to take a much tougher line on crypto – one that could land you in jail for up to 7 years if you operate some sort of digital asset service without permission from the central bank. A draft law that’s been sent to the State Duma wants to make it a crime to run any kind of crypto business – from exchanges to brokerages – without getting officially sanctioned.

New Crypto Law Gets Tough on Unlicensed Activity

The new law is a big step up from some earlier plans that mainly focused on stopping people mining crypto illegally. This time the government is going after all kinds of digital currency transactions – like buying and selling crypto on an exchange.

Key bits of the bill include:

• If you get caught running an unlicensed crypto service you could be looking at a fine of up to $4,000 and 4 years in prison.
• If you’re part of a group of people running an unlicensed crypto business the penalties get a lot worse – up to 7 years in the slammer or forced labour.
• And on top of all that you could also be hit with some serious fines – up to 1 million rubles or a chunk of your income over a few years.

🇷🇺 Russia have introduced a bill to criminalize unregistered crypto services. 👀 pic.twitter.com/KOCaaNZBwt

— Crypto Crib (@Crypto_Crib_) April 18, 2026

The Supreme Court isn’t Too Keen on This Plan

Not everyone’s a fan of this new law – the Supreme Court is saying that introducing prison sentences before the government has a full set of rules in place is a recipe for trouble. Apparently Russia is getting a new Digital Currency law in July and the court thinks that the government should wait until that’s up and running before starting to crack down.

This News Might Not Have a Big Impact on Crypto Prices Just Yet

Russia isn’t exactly the key player in the world of crypto – but what big governments do can still have an impact on how people feel about the whole thing, especially in places where crypto is still a new kid on the block. Bitcoin’s still trading near $75,000 and that’s more to do with what’s happening with interest rates and big investors than what’s happening with Russia’s crypto laws.

That being said, a more strict set of rules in a place like Russia could cause some problems with mining, trading and other things like that – especially if the government starts cracking down hard.

If this law gets passed it would give the Bank of Russia a lot more power over the whole crypto industry – essentially mean that they get to decide who can and can’t run a crypto business. That would be a big change from the way things are now.

The real takeaway here is just how fast this stuff is changing. As governments get more serious about regulation the difference between people who are doing the right thing and people who aren’t is likely to get bigger and bigger.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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