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Crypto▼ Bearish
Russia Moves to Criminalize Unregistered Crypto Service Providers
New legislation mandates Bank of Russia registration for crypto firms, threatening jail time for non-compliance. Expect a contraction in local liquidity.
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The Russian legislative assembly has introduced a bill that mandates the registration of all entities providing cryptocurrency services with the Bank of Russia. This proposal marks a shift in the regulatory landscape for digital assets within the region, moving from oversight to a framework backed by criminal penalties. Under the proposed legislation, individuals or groups operating crypto-related services without formal authorization face the risk of significant fines and potential imprisonment.
Regulatory Enforcement and Criminal Liability
The bill targets the operational structure of crypto service providers by requiring them to secure a license from the central bank before engaging in any commercial activity. By linking registration to criminal statutes, the government aims to curb the proliferation of unregulated exchanges and peer-to-peer platforms that currently operate outside of the state-monitored financial system. The legislation specifically addresses the gap in enforcement that has allowed unregistered entities to facilitate cross-border transactions and asset conversions without adhering to standard anti-money laundering protocols.
This move aligns with broader efforts to consolidate control over digital asset flows as the country navigates international sanctions and seeks to maintain stability in its domestic financial infrastructure. The focus remains on entities that act as intermediaries, such as brokers and custodial services, rather than individual holders of digital assets. The transition toward a mandatory registry is intended to provide the Bank of Russia with direct visibility into the volume and nature of crypto-based transactions occurring within its borders.