Russia files bill on seizure of crypto as property

The Russian government has submitted a draft bill to legally recognize cryptocurrencies as property under criminal law, aiming to streamline the seizure of digital assets in criminal cases.

The bill seeks to amend Russia’s Criminal Code and Criminal Procedure Code to classify cryptocurrencies like Bitcoin as property, addressing a gap in existing laws that previously hindered investigations and asset confiscation.

This move aligns with earlier anti-money laundering provisions but extends the definition to criminal proceedings.

Authorities face technical and legal hurdles in securing crypto assets, particularly those stored in "hot" wallets. The proposed legislation mandates collaboration with specialists to confiscate hardware wallets and transfer funds to government-controlled addresses. Secondary laws will detail these procedures further.

Russia’s Federal Bailiff Service is actively developing mechanisms to convert seized crypto, such as $90 million in Bitcoin from a corruption case, into state revenue. Officials emphasize the need for legal frameworks to manage this process.

A separate initiative suggests creating a state-run cryptocurrency fund using confiscated assets to finance social, environmental, and educational projects. While supported by some legal experts, the central bank opposes crypto investments due to volatility concerns.

The urgency of these measures is underscored by international cases like the U.S. seizure of Russian-linked Garantex, accused of laundering billions for criminal organizations. Domestically, the lack of clear guidelines has complicated enforcement, prompting calls for regulatory clarity.

It's me, @justmythoughts, an ordinary Hive user looking to make the most of the platform. I will appreciate your support. Follow me for more. Thanks, Gracias :)