Russia’s Legislative Steps Toward Crypto Asset Seizure Regulation
In a significant move, Russian lawmakers are pushing forward legislation aimed at regulating the confiscation of cryptocurrency assets in criminal proceedings. This development seeks to address the previous legal gaps that have complicated investigations involving digital currencies.
Progress of the Crypto Seizure Bill at the State Duma Committee
The Committee on State Building and Legislation within Russia’s State Duma has made notable progress on a bill designed to manage the seizure of digital assets during criminal investigations. According to an official announcement from the All-Russian Political Party United Russia, the bill is poised for its third reading and potential adoption.
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Despite cryptocurrencies being recognized as property in various legal contexts, their status within criminal procedural laws remains undefined. This ambiguity has historically posed challenges in crime investigations and the enforcement of property claims. The newly advanced bill aims to mitigate risks linked to the illicit use of cryptocurrencies, covering issues like money laundering, corruption, and terrorist financing.
Key Provisions of the Legislation
The proposed legislation seeks to classify digital assets as property under both the Criminal Code and the Code of Criminal Procedure of the Russian Federation. It also aims to introduce a new article in the Code of Criminal Procedure, outlining the steps for investigators when dealing with discoverable digital assets that may be subject to seizure.
The bill empowers relevant authorities to seize assets by controlling physical devices such as servers, computers, and cold storage wallets. Additionally, it provides mechanisms for transferring assets to secure addresses and outlines procedures for freezing digital currencies, ensuring their preservation for potential confiscation or civil claims.
Pavel Krasheninnikov, head of the State Duma Committee on State Building and Legislation, remarked, “The adoption of this law will close the legal gaps and establish effective mechanisms for law enforcement agencies to manage modern digital assets, drawing on international recommendations and the successful experiences of foreign jurisdictions.”
Anticipating a New Regulatory Environment in Russia
Should the bill be approved, it would complement Russia’s forthcoming crypto regulatory framework, expected to be implemented by July. In December, the Central Bank of Russia proposed comprehensive regulations to facilitate both retail and qualified investors in purchasing digital assets via licensed platforms within the nation.
Regulations for Investors and Platforms
Under the new guidelines, non-qualified investors will be allowed to acquire cryptocurrencies valued up to 300,000 rubles annually, contingent upon passing a knowledge test. On the other hand, qualified investors will have the liberty to purchase unlimited digital assets post a risk-awareness evaluation.
Transactions will be mandated to occur through established licensed platforms, including exchanges, brokers, and trust managers, with additional stipulations for custodians and exchange services. Furthermore, Russian residents will be permitted to buy crypto assets abroad and manage their holdings through intermediaries licensed in Russia, adhering to necessary tax reporting requirements.
Leading stock exchanges like the Moscow Exchange (MOEX) and SPB Exchange have expressed their support for the Central Bank’s proposed regulatory measures. Both institutions confirmed their readiness to roll out crypto trading services once the regulations are active. The Moscow Exchange is actively developing strategies to serve the cryptocurrency market, while the SPB Exchange has pledged to collaborate in building the requisite infrastructure for a regulated market, emphasizing the Central Bank’s role in fostering “transparent and secure conditions” for crypto trading.
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