A new draft law has been prepared and approved by the Russian government's legislative commission, addressing the legal status of cryptocurrency and its confiscation in criminal cases. This draft introduces a legal framework that officially recognizes digital currency as "property" and allows investigative authorities to seize it during criminal proceedings.
According to the draft, if cryptocurrency is discovered during an investigation, it can be classified as physical evidence, and all operations involving it may be restricted. The primary aim is to prevent the owner or third parties from making any changes or transactions with the digital assets until the investigation is complete.
Cryptocurrencies can be stored in two forms: on physical devices ("cold wallets" such as USB drives) or on online platforms ("hot wallets" such as exchanges or apps). The draft outlines procedures for seizing both types. Investigators may confiscate not only the storage devices but also the access codes and passwords needed to use the digital assets.
Additionally, the draft introduces the possibility of transferring the cryptocurrency to a special identification address during the investigation to ensure its security. This process would involve a technical expert who determines the necessary measures based on the characteristics of the digital currency.
Once the law is enacted, cryptocurrency may officially be recognized as an object of bribery, theft, or fraud. It can also be considered a tool for laundering proceeds from criminal activities. If a court finds the accused guilty, the cryptocurrency acquired through illegal means can be confiscated in favor of the state.
This new approach is a significant step toward forming a legal framework for digital financial instruments in Russia and clarifying how they will be treated in the context of criminal law.
