Russian Ministry of Justice proposes crypto seizure framework, including the involvement of technical experts to evaluate preservation measures — is a Russian Bitcoin reserve next?
More on the Potential Legislation from the Russian Ministry of Justice
Let’s examine in more detail what this initiative is about – though, for many, it may already feel familiar, similar to how such measures are handled in the U.S.
Deputy Minister of Justice of the Russian Federation Vadim Fedorov, speaking at the St. Petersburg International Legal Forum, proposed a draft law aimed at formalizing procedures for handling cryptocurrency in a criminal procedure context. In other words, it defines the process of seizing cryptocurrency by treating it as physical property, along with a set of procedures involving the participation of technical experts who will determine the necessary measures — both for preventing asset loss and for preparing them for subsequent confiscation or application toward satisfying victims’ claims.
“A draft law has been developed by the Ministry of Justice that classifies digital currency as property for seizure and subsequent confiscation. At the same time, it is proposed to establish specific requirements aimed at ensuring its preservation – taking into account the characteristics of the particular [digital] currency, the investigator will be able to seize the physical medium containing the access codes or petition the court to impose a ban on transactions.”
That said, it is reasonable to assume that this legislation may also be used to confiscate cryptocurrency in the course of illegal activity without compensating victims – and where would those assets go in that case? Possibly, they could be placed into a separate custody system that, at some point, may be formalized into a Russian Bitcoin Reserve.
Conclusion
Although Russia is not moving as quickly, it is still trending pro-crypto – particularly in areas such as international trade and de-dollarization. This may be one of several initiatives in line with that broader strategy, and we’ll be watching closely.
