June 22, 2024

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 31December 2021 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 FSSP with the participation of the Supreme Court.

Member of the State Duma Expert Council, founder of the Autonomous Non-Profit Organization“PravoRobotov” Nikita Kulikov reported that virtual assets primarily include cryptocurrencies. He believes that the usual practice of confiscation of property will be applied to them.

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

“If law enforcement agencies begin to discussconfiscation of cryptocurrency, then in fact they are launching a mechanism for legalizing cryptocurrency in Russia. But, in my opinion, the Bank of Russia will seriously resist this,” Golikov said.

At the same time, Russian courts have already ruled severaldecisions related to cryptocurrency. Thus, in 2018, the Ninth Arbitration Court of Appeal, during the consideration of a bankruptcy case, ordered the debtor to provide access to a crypto-wallet in order to include it 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.