Russian lawmakers have introduced a draft bill that would criminalize the operation of unregistered cryptocurrency services, tightening oversight of the country’s digital asset sector.

Under the proposal submitted to the State Duma, individuals and entities involved in organizing or facilitating crypto transactions without registration with the central bank could face criminal penalties. These include fines of up to about $4,000 and prison terms of up to four years for basic violations.

Harsher punishments are proposed for large-scale offenses or cases involving organized groups. In such instances, penalties could rise to as much as seven years in prison or compulsory labor for up to five years, along with…