Russia is preparing bills to streamline the confiscation of digital assets

Russia is preparing a bill that specifies 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 lack of centralized control over these assets are hampering these efforts.

Russia introduces bills specifying procedures for confiscating digital assets

Russia is moving forward with digital assets regulation and is preparing a bill to regulate the confiscation of these assets. At the 13th St. Petersburg International Law Forum, investigating the impact of new technologies on crime, the Ministry of Justice made clear that the bill would specify the steps and considerations required to facilitate the seizure of these assets.

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

At the same time, it is proposed to take into account the characteristics of a particular (digital) currency into consideration and establish special requirements aimed at ensuring its security.

These special requirements include confiscation of physical devices that hold keys in wallets involved in criminal activities, such as hardware wallets, and the request that courts enact a ban on transactions.

“Experts are planned to be involved in relevant procedural actions and will determine the set of measures necessary to ensure the security of the digital currency for subsequent confiscation or resolution of the victim’s claim.”

Nevertheless, Fedorov acknowledged the challenge of tackling the seizure of digital assets given the specific circumstances of custody. These situations also make them attractive to criminals due to the lack of centralized control surrounding them. “We cannot physically seize and securely place digital currency, as in the case of cash and valuables,” he recognized.

The measure comes after enacting other cryptocurrency laws that focus on addressing local cryptocurrency threat actors and seek to establish clear rules surrounding the use of domestic digital assets.

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