Russia proposes new bill to address crypto-related crimes
As cryptocurrencies become increasingly popular, they are also being exploited by criminals. In response, governments are working to address this issue. Russia has taken a major step by introducing a new bill to tackle crypto-related crimes. This bill may revolutionise the way cryptocurrencies are handled during criminal investigations.
Understanding the new crypto bill
On 19 May, local media outlets reported that the Russian Ministry of Justice proposed a bill that would treat cryptocurrencies as ordinary property, like cars, houses, or money. If a person involved in a criminal case possesses crypto assets, they can be seized, blocked, or confiscated by the authorities under this law. This represents a significant change in the perception of digital assets by Russian authorities.
Vadim Fedorov’s speech on new crypto bill
Vadim Fedorov, a senior official at the Russian Ministry of Justice, revealed the planned crypto law at the St. Petersburg International Legal Forum, held from 19–21 May. During a session titled “From the Digital World to Reality,” Fedorov outlined how his ministry is prepared to revise its legal framework to combat crimes in the digital era. His point was clear: the law needs to keep pace with technology.
Under the proposed bill, technical experts will assist law enforcement and courts in securing and preserving cryptocurrencies during investigations. Their role is crucial in preventing loss or unauthorised transfers, a significant challenge in the crypto world.
Fedorov stated, “The Ministry of Justice has developed a bill that classifies digital currency as property for arrest and subsequent confiscation. At the same time, it is proposed to establish special requirements aimed at ensuring its safety – considering the characteristics of a specific [digital] currency, an investigator will be able to seize a physical medium with access codes to it or ask the court to impose a ban on transactions.”
The legal mechanism for crypto seizure
The proposed bill outlines how investigators can confiscate cryptocurrencies during an investigation. If an individual is found with a device containing access codes (e.g., USB drives, phones, laptops), the police can seize it. Additionally, authorities can request court orders to freeze specific accounts, preventing any transfers until the case is resolved. Essentially, if you’re under investigation, your cryptocurrency assets are locked down.
According to Fedorov, “Specialists are planned to be involved in the relevant procedural actions, who will determine the set of necessary measures to ensure the safety of digital currency for subsequent confiscation or settlement of the victims’ claims.”
The legislation aims to enhance compensation for victims of crypto crimes. When criminals use cryptocurrencies to steal or swindle, victims often struggle to recover their lost funds because digital currencies move so quickly. The new law will allow the state to trace and freeze such assets, hopefully recovering stolen funds promptly. This could deliver real justice for victims of crypto crimes if successful.
Russia’s long road to crypto regulation
Russia has made numerous attempts to legislate the use of cryptocurrencies, but most proposals have been weak or bogged down in bureaucracy. This new bill shows a more serious intent, with an emphasis on criminal law rather than merely economic policy.
Fedorov acknowledged that the current system isn’t fully equipped to handle the complexities of cryptocurrency. Investigators need new tools, training, and access to global networks to trace transactions effectively.
The bill is currently under review by Russia’s State Duma, the lower house of Parliament. It is scheduled for a first reading soon, where lawmakers will debate its contents and potentially suggest amendments. If approved, the bill could become law by the end of the year.
