Russian authorities will be able to confiscate cryptocurrency

The Russian Ministry of Finance is preparing a legal basis for the confiscation of suspicious savings of Russians.

Amendments toThe Budget Code of the Russian Federation, according to which not only property, but also money is subject to confiscation in favor of the Pension Fund (PFR), in the absence of evidence of the legality of their receipt

If adopted, the rule will start working in December of this year, even before the Digital Financial Assets Act comes into force.

To support the new norm, amendments have already been made to the Tax Code, which legally make it possible to confiscate cryptocurrencies and securities on the same basis as cash. 

In the case of crypto assets, in many cases it is very difficult to confirm the legality of their origin.

If the crypto asset was purchased many years ago and has grown in value, the investor needs to collect documents of many years ago, confirming the legality of funds for its initial acquisition, and then evidence of an increase in the value of this asset.If the investor has held many transactions on different trading platforms, it is very difficult to provide such data.

The most crypto-platforms, where assets are stored, are registered abroad and do not comply with Russian law.They are not obliged to comply with the court order to withdraw the client's funds or to disclose information about his accounts.

Experts believe that the adoption of such norms of the law will destroy the crypto market in Russia, and provoke many investors to withdraw their capital to foreign markets.

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