Russia Approves Criminal Penalties for Illegal Crypto Circulation, Up to Seven Years

Russia’s government has approved criminal penalties aimed at cryptocurrency activity conducted outside the country’s regulatory framework, with prison terms reaching up to seven years and fines that can reach 1 million rubles.

“Skip to content * BTCCBRETHRUB Russia to punish illegal crypto operations with up to 7 years of prison By Lubomir Tassev Updated: April 14 2026 10:32 AM UTC 3 mins read 930589”

Cryptopolitan

CryptoRank says the Russian cabinet approved “criminal penalties for illegal crypto circulation,” including fines of 100,000–300,000 RUB for smaller offenses and up to 4 years’ imprisonment, while “organized/large offenses carry up to 7 years.”

CryptoRank

The same report says “Major/especially large thresholds set at >3.5M RUB and >13.5M RUB,” and that investigations will be led by the Investigative Committee and FSB.

DigitalToday likewise reports that on April 14 (local time), Interfax cited blockchain outlet Cryptopolitan in saying the Moscow city government approved a draft to introduce criminal liability for illegal circulation of digital assets, with penalties of up to 7 years and a fine of up to 1 million roubles.

Meduza, citing RBC, reports that Russia’s government commission approved amendments to the Criminal Code that would impose criminal penalties for “the illegal organization of digital currency circulation without registration or a license from Russia’s central bank,” and says the amendments would add a new article — Article 171.7.

Meduza also quotes the amendments’ framing of a “mandatory element” as “causing major damage, or the extraction of income on a large scale,” and it ties large-scale violations to fines ranging from 100,000 to 300,000 rubles, forced labor of up to 4 years, or imprisonment for up to 4 years.

Across the reporting, the core legal trigger is organizing crypto circulation without Bank of Russia registration or licensing, with Cryptopolitan describing the bill as defining criminal liability as “organizing digital currency circulation without registration or a license from the Bank of Russia.”

The proposed criminal liability is structured around the scale of alleged harm and the organization of the activity, with multiple outlets describing thresholds and penalty tiers.

CryptoRank says “Major/especially large thresholds set at >3.5M RUB and >13.5M RUB,” and it adds that “organized/large offenses carry up to 7 years,” with “up to 1,000,000 RUB fines or income-equivalent.”

Meduza

DigitalToday provides the same tiering logic, stating that “In relatively minor cases, a fine of 100,000 to 300,000 roubles” could be imposed, or “an amount equivalent to up to 2 years of income,” and that “imprisonment of up to 4 years or forced labour would also be possible.”

DigitalToday further says that “If an organised crime group was involved, or there was large property damage and substantial illegal profit, penalties would be significantly increased,” and it describes the top tier as “up to 7 years in prison, up to 5 years of forced labour and a fine of up to 1 million roubles.”

Meduza adds detail about how the amendments define large-scale and especially large-scale damage, saying “damage of 3.5 million rubles or more would qualify as large-scale” and “damage of 13.5 million rubles or more would qualify as especially large-scale.”

Meduza also reports that the amendments would allow fines to be calculated in a way tied to income, while CryptoRank says the law can impose “the financial penalty may be equal to the total amount of the person’s wages or other income from a period of up to five years.”

Across the accounts, the bill is also tied to enforcement by Russia’s investigative and security institutions, with CryptoRank saying “investigations to be led by the Investigative Committee and FSB” and Cryptopolitan stating “Preliminary investigations of criminal cases under the new article will be carried out by the Investigative Committee of the Russian Federation and the Federal Security Service (FSB).”

The criminal penalties are being advanced alongside a broader regulatory package for crypto exchanges, depositories, and investor access, with multiple outlets laying out a staged timeline.

“Russia’s government commission has approved amendments to the Criminal Code that would impose criminal penalties for the illegal circulation of cryptocurrency, the Russian business outlet RBC reported April 13, citing sources”

Meduza

CryptoRank says the measures are part of “a wider regulatory package that introduces licensing for exchanges and depositories, expands investor access, and mandates reporting of foreign wallets,” and it adds that “main laws expected by July 1, 2026” while “criminal amendments effective July 1, 2027.”

DigitalToday likewise describes a “dual structure,” saying the comprehensive regulatory bills are expected to be adopted and take effect by July 1, 2026, while “The criminal punishment provision is expected to take effect from July 1, 2027.”

Cryptopolitan describes the bill as drafted by the Russian government and says “These laws are expected to be adopted and enforced by July 1, 2026, while the changes made with the latest bill should come into force on July 1, 2027.”

CryptoRank says the Ministry of Finance drafted the criminal-liability bill as part of a plan to bring sectors “out of the shadow economy,” and it says the legislation defines criminal liability as “liability for organizing digital currency circulation without registration or a license from the Bank of Russia.”

DigitalToday also says the package includes a draft “law on digital currency and digital rights” and that it “would introduce a licensing system for crypto exchanges and custodians, while setting rules for coin trading and investment,” including “a provision to broaden access to non-qualified investors.”

Taken together, the sources depict a shift from unlicensed activity toward a regulated system, with criminal exposure for activity outside it and a compliance framework for exchanges and custodians inside it.

The reporting includes direct explanations of what constitutes “illegal cryptocurrency circulation” and how the measure would be interpreted by Russia’s legal community.

CryptoRank says the bill defines criminal liability as “liability for organizing digital currency circulation without registration or a license from the Bank of Russia,” and it quotes Vladimir Gruzdev, chairman of the Board of the Association of Russian Lawyers, explaining that “Illegal cryptocurrency circulation refers to the activity of organizing the circulation of digital currency in violation of Russian law.”

CryptoRank

Cryptopolitan repeats the same framing, stating that “It defines criminal liability for cryptocurrency operations as ‘liability for organizing digital currency circulation without registration or a license from the Bank of Russia.’”

DigitalToday likewise says the draft would specify as punishable act the “organising of cryptocurrency circulation without registration or a licence from the Bank of Russia,” and it describes the bill’s wording as defining the target of criminal liability as responsibility for “organising the circulation of digital assets without registration or a licence from the Bank of Russia.”

DigitalToday also quotes Gruzdev through RBC, describing it as “activities that organise the circulation of digital assets in violation of domestic laws.”

Meduza provides additional legal context by quoting the amendments’ language about a “mandatory element” requiring “causing major damage, or the extraction of income on a large scale,” and it ties that element to the penalty tiers.

The sources also describe how the bill would be implemented procedurally, with CryptoRank saying “investigations to be led by the Investigative Committee and FSB,” and with Cryptopolitan specifying “Preliminary investigations of criminal cases under the new article will be carried out by the Investigative Committee of the Russian Federation and the Federal Security Service (FSB).”

The sources also describe public sentiment and the expected effect on crypto activity in Russia, including concerns about government control and the possibility of restricting access to global exchanges.

“Skip to content * BTCCBRETHRUB Russia to punish illegal crypto operations with up to 7 years of prison By Lubomir Tassev Updated: April 14 2026 10:32 AM UTC 3 mins read 930589”

Cryptopolitan

CryptoRank says a public survey found “~33% want crypto treated as property while 36% would still invest,” and it adds that “many fear excessive government control.”

Meduza

DigitalToday similarly reports that “Public opinion was divided,” and it cites a Bits.media survey finding “about one-third of Russians said cryptocurrencies should be recognised and regulated as property, like real estate or bank deposits,” while “A similar share worried the new regulations could excessively strengthen government control.”

DigitalToday also reports that “Even so, 36 percent of all respondents said they were willing to invest in cryptocurrencies,” tying the divided views to continued interest.

CryptoRank further says the regulatory tightening “raises enforcement and security risk for crypto users and services in Russia,” and it adds that it “may curb DeFi activity and cross‑border exchange access.”

Cryptopolitan includes a similar theme, stating that “Besides indications that Moscow is preparing to restrict access to global exchanges,” it also plans “to obligate Russians to report their foreign crypto wallets to Russia’s Federal Tax Service (FNS).”

Across all outlets, the stakes are tied to whether activity occurs within the licensed framework or outside it, because the criminal penalties are repeatedly described as applying to organizing circulation without Bank of Russia registration or licensing.