- Russia’s Ministry of Justice drafts a bill to classify crypto as property for seizure in criminal cases.
- The bill allows investigators to confiscate digital assets and block transactions during probes.
- The bill reflects Russia’s shift toward stricter crypto regulation amid rising cybercrime concerns.
Russia is planning a new step to deal with crypto crimes. On May 19, local news sources reported that the Russian Ministry of Justice is working on a new law. Under this bill, digital assets would be considered the same as traditional forms of property. For that reason, they can be taken from you during an investigation into a crime.
New Bill Aims to Regulate Crypto in Criminal Cases
Speaking at the St. Petersburg International Legal Forum, Vadim Fedorov said that the government was prepared to reform the justice system. He led a session named “From the digital world to reality: how today’s technology impacts crime and law enforcement.”
According to Fedorov, the Ministry of Justice has already started the process by drafting a bill. Under this bill, cryptocurrencies are considered property. That means their seizure and possible confiscation can happen in criminal situations.
Besides, the bill contains additional protection rules for digital assets. For example, should digital currency is found in a case, an investigator can take the device that contains the access codes. They are permitted to ask a court to prevent transfers from a specific account.
Fedorov pointed out that these tasks would rely on the input of special technical experts. The experts will make recommendations on how to guard the digital currency until police have seized it or restored its value to the victims.
Nonetheless, he admitted that some problems still exist with merging systems. A serious issue with digital currency is that you cannot save it like cash or jewelry. Because they only exist online, it is tough for the police and courts to manage them properly.
Now, the bill is undergoing a review in the Russian parliament’s State Duma. This legislation should soon be debated at the first reading.
Russia Plans Legal Tools to Confiscate Digital Assets
So far, one of the main challenges is the anonymous nature of crypto. Many criminals prefer digital currency as it does not have a main authority and is hard to follow. For this reason, criminals often use it to perform their activities.
Still, Russia is currently working on forming a legal way to address them. The purpose, according to Fedorov, is to streamline the process of the state confiscating crypto in criminal matters. This could allow victims to receive their lost damages.
This year’s St. Petersburg International Legal Forum will be held from May 19 to 21. The forum is organized by the Russian Ministry of Justice and Roscongress. It is once again being organized at the ExpoForum Convention and Exhibition Centre in St. Petersburg. Russian state news agency TASS is the event’s overall media partner.
In essence, the newly proposed bill shows that Russia is taking a different stance towards cryptocurrencies. After the law is passed, police and courts will have the power to take digital assets during criminal probes. This means the government is taking more steps to stop cybercrime and help victims. There are still technical obstacles, but Russia is working on crypto regulations.
