This is why the Russian Investigation Commission is asking for Bitcoin to be regulated as a property

Russia’s leading federal investigators are proposing new Bitcoin laws that could potentially criminalize transfers through third parties.

The Russian Investigation Committee has submitted proposals that could potentially affect the country’s cryptocurrency market. In early February, agency president Alexander Bastorikin announced at an extended board meeting that the committee proposed legally recognizing cryptocurrency as property, Russian news outlet Interfax reported There is.

He also proposed criminal liability for transferring electronic payment methods to a third party. The Russian legal expert interviewed by crypto.news was split over whether cryptocurrencies fall under this term. But one thing is clear. If approved, it is to change the clear rules regarding how cryptocurrency is seized or forfeited during investigation.

Dropper

At the time of reporting, Russian law does not have a standardized method of how cryptocurrency is handled in criminal cases. But that could change soon. The proposed amendments officially classify Crypto as property and allow the authorities to treat it as evidence. The new rules also set guidelines for freezing and confiscating cryptocurrencies.

One of the key issues addressed by the committee in its call is the illegal use of third-party bank accounts called “drottas” to promote cryptocurrency trading. This is why authorities propose criminal liability.

According to Russian law, electronic payment methods refer to how individuals can manage and transfer funds through electronic systems such as bank cards and digital wallets. However, when it comes to cryptocurrencies, law enforcement faces technical challenges when identifying and tracking illegal transactions.

In 2020, Vladimir Sobinsky, a legal expert at DRC, the leading law firm of Binance, explained in a commentary to Crypto.News that the question is how Crypto is purchased in Russia. Many cryptography beginners rely on a peer-to-peer service for centralized crypto exchange, he says.

There, they essentially “buy access” someone else’s banking app, as Russian banking rules are limited in their ability to directly purchase crypto. This mechanism technically counts as using Dropper’s services, Sobinsky explains.

“In most cases, this is because if you frequently carry out encryption or sales transactions, your bank card will be blocked under federal law 115-FL and you are forced to close your account. As a result, you can use cryptographic information. Individuals who frequently purchase and sell currency are forced to “purchase access” to third-party banking apps in order to trade through their accounts, and make effective use of dropper services for their own purposes. Used for ”

Vladimir Sobinsky

Bastrykin’s proposal appears to criminalize this practice with an increasing number of crimes related to cryptocurrency, particularly those involving crimes involving young people. Sobinsky says droppers are “young people or immigrants” who are often willing to “sell access” to their bank accounts for 50,000-60,000 Russian rubles (about $500-600).

Data from the Russian Commission on Inquiry found that digital crimes increased by 10% in 2024 compared to the previous year, with one in five such crimes committed by individuals under the majority of age. However, the number of people involved in Crypto is unknown.

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Legal meaning

The idea of ​​criminal liability for transferring electronic payment methods is clear, but not whether it applies to crypto wallets. Sobinsky says that crypto wallets are not considered electronic payment methods. The Nevsky IP Act, another Russian company that also represents vinance in court, believes they are.

“From a cryptographic perspective, electronic payment devices include both digital and hardware wallets. We understand the initiatives to criminalize the transfer of such electronic payment instruments to candidates. With bank cards, law enforcement, regulators and the bank itself know who is doing the transaction. However, in cryptocurrencies, wallets are often known, but not specific individuals.”

Ruslan Gafurov, Partner, Nevsky, Head of Dispute Resolution for IP Law

Gafrov also pointed out that the “dlopper” phenomenon is common in the Russian bank card sector. Banks always have clauses in card issuing agreements that prohibit the transfer of cards, but “there is no criminal ban at the moment,” Gafrov said, adding that the issue is “not as simple as it looks.” I did.

To address Bastorikin’s call to classify cryptography as property, the Nevsky IP Act partners have stated that it is already recognized as property under Russian law, particularly in civil and tax matters.

“The courts have previously dealt with questions about whether cryptocurrencies are considered property in bankruptcy and divorce cases. At the time, in Russia, under the meaning of Article 128 of the Civil Code, cryptocurrencies are actually property. It was first confirmed that it was considered.

Ruslan Gafurov

However, Gafrov acknowledged that amendments may be needed to address certain procedural issues related to cryptocurrency in criminal law. For example, these modifications could give light on cryptocurrency confiscation and seizure. He pointed out that the problem is not about recognizing cryptocurrency as property, and not about how it is treated in criminal investigations.

Sobinsky adds that Russian law enforcement has faced many challenges so far, from tracking stolen codes to returning them to victims.

“If cryptocurrency is tracked and seen in the admin wallet, when it stops moving, it raises questions about how to recover it. The development of regulations in this area is very important and mostly in this area. The focus should be on the increase in the number of resolved crimes.

Vladimir Sobinsky

Both law firms recognize the code as property, but agree that while the property is not new, the proposed changes will make the criminal investigation even more clear. They believe that law should also address real issues, such as methods of encryption, freeze or use as evidence in criminal cases.

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