[Russia Plans to Impose Criminal Penalties for Illegal Crypto Exchanges, with a Maximum Sentence of Five Years in Prison] According to Bits.media, the Russian State Duma has passed the first reading of a government-submitted bill titled 'On Criminal Liability for Illegal Organization of Digital Asset Circulation,' which imposes criminal penalties on illegal cryptocurrency exchange activities conducted without state registration and licensing. Under the bill, organizers of illegal exchanges face fines ranging from 100,000 to 300,000 rubles or penalties equivalent to one to two years of income. Courts may impose compulsory labor or a maximum prison sentence of four years, along with an additional fine of up to 80,000 rubles. If the offense is committed by an organized group or involves particularly large-scale income (exceeding 3.5 million rubles), the maximum penalty increases to five years in prison and a fine of up to 1 million rubles. The bill stipulates that the penalties will take effect on July 1, 2027. Previously, government crypto regulation required all Russian crypto exchanges to operate through licensed financial institutions.