Key Points of the New Regulation
Russia's Ministry of Finance has submitted a draft amendment to the Administrative Offenses Code targeting crypto exchanges that violate digital currency circulation rules. The proposal aims to strengthen oversight of the digital asset sector by imposing fines on non-compliant exchanges. Specifically, if an exchange continues to provide services to individual investors who have exceeded the government-set annual crypto transaction limit, the exchange will face penalties.
Fine Details
The draft stipulates that offending exchanges will be fined between 700,000 and 1 million rubles (approximately $7,500 to $11,000). Responsible individuals, such as exchange executives or compliance officers, would face fines of 30,000 to 50,000 rubles, or disqualification from holding relevant positions for one to two years. This multi-tiered approach underscores Russia's commitment to enforcing compliance through economic deterrence.
Legislative Process and Effective Date
The draft has already received approval from the Russian government's Legislative Committee and will now be submitted to the State Duma for further consideration. If passed, the new rules will come into force on July 1, 2027. This timeline gives crypto exchanges ample opportunity to adapt their operations and compliance frameworks to meet the upcoming requirements.
Background and Implications
Russia has been gradually tightening its stance on cryptocurrencies, having previously expanded reporting obligations for miners and maintained a ban on non-custodial wallet transfers. The new fine proposal for exchanges fills a critical gap in the regulatory landscape. Analysts believe that as the 2027 implementation date approaches, exchanges operating in Russia must urgently revamp their compliance systems to avoid substantial financial penalties.