Russia Proposes 1 Million Ruble Fines for Crypto Exchanger Violations

The Russian government commission on rule-making has approved a draft law introducing significant administrative penalties for cryptocurrency exchangers that violate transaction limits with retail investors. According to reports from RBC, the proposed amendments to the Administrative Code aim to strictly regulate how legal entities facilitate digital asset transfers for non-professional residents. If passed, the new regulations are slated to come into force on July 1, 2027, marking a major shift in the country's approach to oversight within the digital finance sector.

Heavy Fines and Penalties for Market Participants

The legislative proposal targets legal entities operating as crypto exchangers that process transactions for individuals exceeding established government thresholds. Under the new article of the code, offending organizations face substantial financial repercussions and professional sanctions.

• Legal Entities: Fines ranging from 700,000 to 1 million rubles for exceeding resident transaction limits.
• Officials: Personal fines of 30,000 to 50,000 rubles or professional disqualification for one to two years.
• Licensing Requirements: Only financial institutions with a banking license and a monthly turnover exceeding 3.5 million rubles will be authorized to operate as official exchangers.

While the current draft does not explicitly mention administrative liability for the clients of these exchangers, the focus remains on the service providers' responsibility to enforce compliance.

Transaction Limits and Regulatory Framework

While the specific transaction types and exact limits are not detailed in the current document, historical proposals provide context for the likely restrictions. In December, the Bank of Russia suggested an annual threshold of 300,000 rubles for non-professional investors. However, the Ministry of Finance has indicated that these figures may still be adjusted. Under the proposed framework, regulated exchangers will allow citizens to transfer funds from foreign crypto platforms to Russian bank accounts and vice versa, provided they adhere to the legal turnover requirements.

Through a legal crypto exchanger, Russians will have the right to credit money from cryptocurrency purchased abroad to a bank account or transfer funds to foreign platforms, as well as sell cryptocurrency and credit money from the transaction to an account in a Russian bank.

The initiative is part of a broader package of laws developed jointly by the Central Bank and the Ministry of Finance to gain control over the national blockchain ecosystem. Authorities expect the primary bill governing these activities to be enacted by July 1, 2026, setting the stage for the administrative penalties to follow a year later. This structured rollout indicates a long-term strategy to integrate cryptocurrency transactions into the formal financial system while mitigating risks associated with unregulated capital outflows.