November 27, 2022

Copy-paste | In Russia, will develop a mechanism for the arrest of cryptocurrencies

Russia will develop a mechanism for the seizure and confiscation of cryptocurrencies

Ministry of Internal Affairs and other law enforcement agencies up to 31 December 2021, they will develop proposals for the seizure of cryptocurrencies and other virtual assets for their confiscation. This was reported by RBC with reference to a source familiar with the instructions of the board of the Ministry of Internal Affairs.

The proposals will be prepared by the Ministry of Internal Affairs, Rosfinmonitoring, the Prosecutor General’s Office, the Investigative Committee, the Ministry of Justice, the FSB, the Federal Customs Service and the Federal Security Service with the participation of the Supreme Court.

Member of the State Duma Expert Council, founder of ANOPravoRobotov Nikita Kulikov said that cryptocurrencies are primarily related to virtual assets. He believes that the usual practice of seizing property will be applied to them.

According to co-owner and platform by Konstantin Golikov, cryptocurrency in Russia is now in the gray zone, so it must be recognized at the legislative level as either a commodity or a cash equivalent.

“If the law enforcement agencies begin to discussconfiscation of cryptocurrency, then in fact they start the mechanism of legalization of cryptocurrency on the territory of Russia. But, in my opinion, the Bank of Russia will seriously resist this, ”said Golikov.

Moreover, the Russian courts have already issued severaldecisions that relate to cryptocurrency. So, in 2018, the Ninth Arbitration Court of Appeal during the consideration of the bankruptcy case ordered the debtor to provide access to the crypto wallet for inclusion in the bankruptcy estate and thus recognized the cryptocurrency as property.

In February 2019, the Plenum of the Supreme Court ruled that articles on the legalization of criminal proceeds should also apply to cryptocurrency.