The Central Bank of Russia is introducing criminal penalties for unlicensed cryptocurrency operations, focusing on exchanges and brokers.
The Central Bank of Russia is set to implement criminal penalties for individuals and entities engaging in cryptocurrency activities without proper licensing. This announcement was made by Deputy Chairman Vladimir Chistyukhin during a recent interview.
Chistyukhin stated, "If someone offers professional services related to cryptocurrencies without any license, then criminal liability may be established."
The focus of these regulations will be on financial intermediaries who provide services without authorization, facing potential administrative penalties for their actions. These changes are part of a broader legislative package known as the "On Digital Currency and Digital Rights," submitted to the State Duma on April 1. This draft law aims to outline licensing requirements for cryptocurrency market players, establish limits for unqualified investors, and detail procedures for de-anonymization.
Cashless Transactions Only
In addition to licensing, Chistyukhin indicated that cryptocurrency exchanges in Russia will exclusively facilitate cashless transactions, with no mechanisms in place for converting digital assets into cash. He emphasized that all transactions should be conducted in fiat currency.
"We assume that all operations should be conducted cashlessly. I mean payment in fiat currency," he stated.
Chistyukhin also addressed the situation of market participants currently operating outside the law, noting that the authorities are working to enable these entities to legalize their operations. He described the criteria for obtaining a cryptocurrency exchange license as relatively straightforward, including modest capital requirements and the establishment of anti-money laundering controls.
Asset Storage Regulations
Regarding the storage of digital assets, the draft law does not restrict Russians from using non-custodial wallets for their holdings. However, transferring digital coins from registered Russian exchanges will be limited to custodial wallets only. Chistyukhin reiterated the importance of compliance with anti-money laundering and counter-terrorism financing regulations to ensure transparency within the sector.
"No one prohibits individuals and entities from continuing to hold digital assets in foreign wallets, but they must declare them to tax authorities," he reminded.
He assured that all cryptocurrency currently possessed by Russian individuals would remain legally theirs, with no penalties or restrictions for holding or using these assets.
Earlier this year, the Ministry of Finance, in conjunction with the Central Bank and other federal bodies, developed a concept aimed at the tokenization of real-world assets.
