The government commission on legislative activities has approved provisions that introduce criminal liability for illegal cryptocurrency transactions. This was reported by RIA Novosti.

ForkLog discussed with experts who will be primarily affected by these measures, what risks will arise for exchanges, and whether the new regulatory model can eliminate the existing "gray" market.

Context

A new article, 171.7, has been proposed for the Criminal Code of the Russian Federation, addressing the illegal organization of digital currency circulation. This introduces liability for activities related to the circulation of digital currency without registration or a license from the Bank of Russia.

Deputy Chairman of the Central Bank, Vladimir Chistyukhin, first mentioned the introduction of new measures earlier this year.

The penalties will depend on the amount of damage caused. The basic offense carries a fine of up to 300,000 rubles, compulsory labor, or imprisonment for up to four years.

If aggravating circumstances are present, such as if the act is committed by a group or involves particularly large sums, the sentence can increase to seven years, and the fine can reach up to 1 million rubles.

A large amount of damage is proposed to be defined as 3.5 million rubles, while particularly large damage is considered to be 13.5 million rubles or more.

The amendments will be part of the bill "On Digital Currency and Digital Rights," which may come into effect on July 1, 2026.

Who Will Be Punished

Olga Zakharova, director of the legal department at PLAN B, emphasized that the penalties will not target individual users of digital assets engaging in one-off cryptocurrency exchanges.

Illegal circulation refers specifically to activities related to organizing the circulation of virtual currency, including:

  • services for accounting cryptocurrencies and conducting transactions with them;
  • any other services for organizing their circulation—if Russian infrastructure is used.

Zakharova explained that not only exchanges are at risk, but also any services that accompany transactions or provide infrastructure. The law will even affect foreign companies if they use Russian bank accounts, electronic money, or elements of the national payment system.

The Main Risk for Exchanges

The key issue for the market is not the fact of criminal liability itself, but how easily one can be brought to it, according to Ignat Likhunov, founder of the legal agency Cartesius.

He pointed out the threshold of 3.5 million rubles, which is relatively low for the cryptocurrency market.

"In simple terms, if an exchange buys, say, 40,000 USDT or 50,000 USDT, incurs expenses, and then sells them at a profit of 1%, they have already exceeded the 3.5 million threshold and have set themselves up for the first offense," the expert explained.

This means that even standard operations could technically fall under criminal charges.

Likhunov noted an additional risk related to classifying activities as those of a group. He stated that almost any exchange operates as a small organization: there is an operator, a manager, a director, and sometimes couriers.

In such a configuration, the business could fall under more severe charges, which carry maximum sentences.

Why Are These Measures Necessary?

Experts generally agree that this is not a one-time punitive initiative but an attempt to bring the cryptocurrency market into a regulated framework.

Andrey Tugarin, founder of GMT Legal, noted that the primary goal of the new legislative block is to regulate the organizers of digital currency circulation. This primarily targets cryptocurrency exchanges, although the scope of participants is broader.

"In Russia, we will finally move from a gray zone to a legal and illegal stage. There will be nothing intermediate in this regard. The new law will provide the opportunity to acquire legal status to start activities related to the circulation of cryptocurrencies in the Russian Federation," he said.

Likhunov expressed a similar view. He stated that criminal liability did not appear suddenly; it was initially part of a package of bills on licensing. Now it is time for sanctions.

"This is a completely normal, understandable, logical sequence of events when we talk about the beginning of regulation of a market in general," the interviewee emphasized.

Zakharova also linked the amendments to the future law "On Digital Currency and Digital Rights." These measures, along with previously proposed amendments to the Code of Administrative Offenses regarding cryptocurrency exchanges and illegal mining, are intended to ensure compliance with the rules established by the new foundational law.

Can the Legal Market Replace the Existing One?

Likhunov identified the most interesting question as what will happen to the existing market after licensing is introduced.

He referred to the framework bill and comments from representatives of the Central Bank, indicating that the regulator envisions a future model involving digital depositories, brokers, operators, and licensed cryptocurrency exchanges.

However, there is still a lack of clarity on many key aspects. For instance, it is unclear whether legal participants will be able to work with USDT—the main asset currently in cryptocurrency circulation.

Restrictions are also being discussed:

  • possible ban on cash transactions;
  • limits for non-qualified investors.

According to the expert, if restrictions are implemented, the legal market will be too narrow and unable to meet the real needs of businesses.

Likhunov provided a practical example: with limits and restrictions, users may simply be unable to purchase cryptocurrency in the necessary volumes for transactions, such as in foreign economic activities.

"There will be two parallel worlds. One that currently exists, and the other—licensed," he summarized.

Recall that in February, Russia approved the concept of asset tokenization.