Key Takeaways
- Russia’s Ministry of Justice is building a framework to control and confiscate digital currencies tied to illicit activity.
- The proposed legislation aims to address challenges in confiscating digital assets by allowing law enforcement to seize access codes and block transactions.
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Russia’s Ministry of Justice has drafted a bill that would formally treat digital currencies, like Bitcoin, as property that can be seized and confiscated in criminal investigations, as announced by Vadim Fedorov, Russian Deputy Minister of Justice, during a legal forum focused on the challenges posed by new technologies.
The bill, first reported by TASS, would allow law enforcement to seize physical devices, such as hardware wallets or storage drives, that contain access to digital currencies. It would also enable investigators to request court orders to block crypto transactions.
“It [the bill] proposes special requirements to ensure the security of such assets — depending on the specific characteristics of the digital currency, an investigator would be able to seize a physical device containing access codes or request a court-imposed ban on transactions,” Fedorov said.
The proposed legislation is part of the Russian government’s effort to modernize its criminal justice tools in response to the growing role of digital assets in financial crime.
Fedorov said that authorities aim to close legal loopholes that currently make it difficult for law enforcement to deal with crypto assets involved in crime.
Recognizing the technical complexity of handling crypto, the bill calls for the involvement of specialists who can determine how best to secure digital assets while ensuring they remain intact for future confiscation or victim compensation.
The bill is under preparation for a first reading in the State Duma, Russia’s lower house of parliament.
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