The Russian State Duma has passed the first reading of a bill imposing criminal penalties on illegal cryptocurrency exchange activities. The legislation, titled "On Illegal Organization of Digital Asset Circulation," targets exchanges operating without state registration and licensing. Offenders could face fines ranging from 100,000 to 300,000 rubles or penalties equivalent to one to two years' income. Additionally, courts may impose compulsory labor or imprisonment of up to four years, with an extra fine of up to 80,000 rubles. For offenses involving organized groups or 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 penalties are set to take effect on July 1, 2027. This move follows previous regulations mandating that all Russian crypto exchanges operate through licensed financial institutions.