Russia Prepares Bill to Streamline Confiscation of Digital Assets

Russia is preparing a bill that would specify the requirements and procedures for the confiscation of digital assets, taking into account the specific circumstances surrounding these actions. The Russian Ministry of Justice emphasized that anonymity and the lack of centralized control over these assets have hampered these efforts.

Russia to Introduce Bill Specifying Procedures to Confiscate Digital Assets

Russia is advancing in the digital assets regulation, preparing a bill that would regulate the confiscation of these assets. At the 13th St. Petersburg International Legal Forum, while examining the impact of new technologies in crime, the Ministry of Justice revealed that this bill would specify the procedures and considerations needed to expedite the seizure of these assets.

Deputy Minister of Justice of the Russian Federation Vadim Fedorov explained that the bill would classify these assets as property for arrest and confiscation purposes. Furthermore, Fedorov declared:

At the same time, it is proposed to establish special requirements aimed at ensuring its safety – taking into account the characteristics of a specific [digital] currency.

These special requirements would include confiscating physical devices holding the keys to wallets involved in criminal activities, like hardware wallets, and asking courts to enact bans on transactions.

“Specialists are planned to be involved in the relevant procedural actions, who will determine the set of necessary measures to ensure the safety of digital currency for subsequent confiscation or settlement of the victims’ claims,” Fedorov clarified, detailing the procedures to be followed in the context of crimes involving digital assets.

Nonetheless, Fedorov acknowledged the challenges of tackling the seizure of digital assets, given the specific circumstances of their custody. These circumstances also make them attractive to criminals due to the lack of centralized control surrounding them. “Digital currency cannot be physically seized and placed in a safe, as is the case with cash and valuables,” he recognized.

The measures would be focused on dealing with local cryptocurrency threat actors and come after enacting other cryptocurrency laws that seek to establish clear rules surrounding the use of digital assets in the country.

Read more: Putin Signs Law Declaring Crypto as Property in Russia