FameEX Hot Topics | Russian Authorities Seek Permission to Confiscate Crypto Assets and Set Up Wallets, Says Law Enforcement

Russian law enforcement agencies may soon be permitted to create and manage crypto accounts and wallets for holding seized digital assets, which can later be sold for the benefit of the state, according to the Prosecutor General's Office of the Russian Federation. In a roundtable discussion, Madina Dolgieva, a representative of the Office's Main Criminal Procedural Department, stated that there's no need to amend the law to grant such powers, as it can be done through a government decree. Dolgieva also suggested that the Russian Federal Bailiff Service be authorized to auction seized cryptocurrency with a separate government decree or amendment to the current law governing enforcement proceedings.

Russia's proposed measures signal a significant step towards cryptocurrency regulation in the country, as American and European law enforcement agencies have already established procedures for seizing and selling crypto assets linked to criminal activities. However, the head of Russia's Prosecutor General's Office, Igor Krasnov, believes that recognizing cryptocurrency as property is insufficient to combat criminal activity in the current difficult international situation. According to Krasnov, this situation increases the risks of exploiting vulnerabilities through crypto.

Krasnov has demanded that crypto exchanges providing services to Russian customers register in the country and share user data with Russian law enforcement. He has also called for more comprehensive regulations for digital assets in Russia. In July 2021, Finland's customs service announced the sale of confiscated bitcoin worth over $50 million, while the US Justice Department recently seized cryptocurrency worth over $112 million linked to fraudulent investment schemes. The implementation of Russia's proposed measures and their impact on the cryptocurrency industry remain to be seen.

Disclaimer: The information provided in this section is for informational purposes only, doesn't represent any investment advice or FameEX's official view.