Russian lawmakers have passed legislation that will formally allow seizures of crypto assets to be regulated in criminal proceedings, eliminating legal loopholes that complicated previous investigations.
Bill on cryptocurrency seizures advances in State Duma committee
On Monday, the State Construction and Legislation Committee of the State Duma, the lower house of Russia’s Federal Assembly, presented a bill to regulate the seizure of crypto assets in criminal proceedings.
In an official Telegram message, Russia’s ruling political party, the All-Russian Political Party United Russia, revealed that the legislation was recommended for adoption in its upcoming third reading.
Although cryptocurrencies are already recognized as property under several laws, their status has not yet been established in criminal procedure laws, the statement noted, which has complicated the investigation of crimes and enforcement of property claims.
As a result, the recently passed Crypto Bill aims to reduce the risks associated with the use of cryptocurrencies in criminal activities, such as money laundering, corruption and terrorist financing.
To solve this problem, the bill proposes to recognize digital assets as property under the Criminal Code and the Code of Criminal Procedure of the Russian Federation. In addition, it plans to amend the Code of Criminal Procedure with a new article to regulate the actions of investigators when discovering digital assets subject to seizure.
The legislation will also grant competent authorities investigating a case the power to seize assets by taking control of physical devices, including servers, computers and cold wallets, or by transferring the assets to a special address for safekeeping. Finally, it will introduce a mechanism to freeze digital currency for later confiscation or civil action.
“The adoption of the law will eliminate the legal vacuum and create effective mechanisms for law enforcement agencies to work with modern digital assets, based on international recommendations and the successful experience of foreign legal systems,” said Pavel Krasheninnikov, Chairman of the State Duma Committee on State Building and Legislation.
Russia prepares for a new regulatory landscape
If approved, the bill would complement Russia’s upcoming crypto framework, which is expected to come into effect by July. In December, the Central Bank of Russia unveiled comprehensive new regulatory proposals aimed at allowing retail and qualified investors to purchase digital assets through platforms licensed in the country.
The new rules will allow unqualified investors to buy up to 300,000 rubles per year in the most liquid cryptocurrencies after passing a knowledge test. Additionally, qualified investors will be able to purchase unlimited quantities of any digital asset after passing a risk awareness test.
Under the proposed framework, transactions must be carried out through already licensed platforms, including exchanges, brokers and trust managers, with additional requirements applied to depositories and exchange services.
Additionally, residents will be allowed to purchase crypto assets abroad and transfer their holdings through licensed intermediaries in Russia, subject to necessary tax reporting. Major exchanges, the Moscow Stock Exchange (MOEX) and the SPB Stock Exchange, have shared their support for the regulatory framework proposed by the central bank.
As Bitcoinist reports, institutions have confirmed that they are ready to launch cryptocurrency trading services in accordance with the upcoming rules as soon as they are enacted. The Moscow Stock Exchange has claimed that it is actively working on solutions to serve the cryptocurrency market, and plans to offer them as soon as the relevant regulations are in place.
At the same time, the SPB Exchange also stated that it is ready to participate in joint efforts aimed at developing the relevant infrastructure within the regulated market, highlighting the Central Bank’s efforts to create “transparent and secure conditions” for trading cryptocurrencies.
The total crypto market capitalization is at $2.94 trillion in the one-week chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, chart from TradingView.com
Editorial process as Bitcoinist focuses on providing thoroughly researched, accurate and unbiased content. We follow strict sourcing standards and every page undergoes careful review by our team of top technology experts and seasoned editors. This process ensures the integrity, relevance and value of our content to our readers.
