Russia to Introduce Criminal Liability for Unlicensed Crypto Activity by July 2026

The Russian Federation is implementing comprehensive regulations for the digital assets market, which will culminate in the introduction of criminal liability for unauthorized professional activities in the cryptocurrency sector. On March 23, 2026, the Russian government approved a legislative package including the draft law "On Digital Currency and Digital Rights," which has been submitted to the State Duma for consideration. This legislation is designed to formalize the entire industry, mandating that all market participants operate through licensed intermediaries subject to Anti-Money Laundering and Counter-Terrorist Financing (AML/CFT) regulations.

The legislative initiative creates a strict framework for digital currency transactions. Under these provisions, all operations must be conducted via accredited entities—such as exchanges, brokers, or trust managers—holding a professional securities market participant license. Vladimir Chistyukhin, First Deputy Chairman of the Central Bank of Russia (CBR), confirmed that the unlicensed provision of professional crypto services will be subject to criminal prosecution. At the same time, the CBR noted that the licensing process for existing market participants will be streamlined, requiring minimal capital and reporting.

Specific restrictions are being introduced for retail investors who do not have "qualified" status. For these individuals, an annual limit of 300,000 rubles per intermediary has been set for the purchase of approved digital assets. Additionally, Russian citizens must declare all assets held in non-custodial or foreign wallets to tax authorities, with a one-month deadline starting July 1, 2026, to report the opening or closing of foreign blockchain wallets.

In addition to tightening circulation controls, a separate bill aimed at criminalizing unregistered mining was introduced in early April 2026. Potential penalties for illegal mining that results in significant damage or income (exceeding 3.5 million rubles) could reach five years in prison, with the possibility of asset confiscation. Authorities estimate that tens of thousands of unregistered miners are currently operating, which provided a key incentive for the introduction of criminal penalties.

As part of the new regulatory measures, banks will be strictly prohibited from processing transfers to unofficial or foreign crypto exchanges if those transactions bypass licensed Russian intermediaries. Vladimir Chistyukhin clarified that there are no plans to allow digital assets to be withdrawn as cash in Russia, as all fiat payments must remain cashless. This regulatory package, slated for final parliamentary approval by July 1, 2026, signals a shift from "patchwork" oversight to a unified, comprehensive control system. Concurrently, a phased rollout of the Digital Ruble is scheduled to begin on September 1, 2026.