January 24, 2021

The Ministry of Internal Affairs is exploring ways to confiscate cryptocurrencies

The Ministry of Internal Affairs is exploring ways to confiscate cryptocurrencies

The Ministry of Internal Affairs and other law enforcement agencies were instructed to develop legal mechanisms for the seizure and confiscation of digital assets until 2022.

RBC reports that by exploring possible waysseizures of cryptocurrencies will also be handled by specialists from the FSB, the Prosecutor General’s Office, the Federal Service for Financial Monitoring, the Justice Ministry, the Federal Customs Service and the Federal Security Service. The development of these mechanisms will be carried out in parallel with the discussion of other measures to combat cybercrime.

Legal regulation of the information environment is becoming increasingly relevant, since many hackers often require a ransom in cryptocurrency, most often in bitcoins, to make it easier to hide the further movement of funds outside the banking system.

However, in this case, the executive bodies will encounter a lot of difficulties caused by the features of the blockchain technology and the virtual assets themselves.

Access to funds in a crypto wallet in principleit is impossible to obtain without a private key, which the criminal himself will have to give. Even if the assets are transferred to the stock exchange, then for arrest and seizure it must be in Russian jurisdiction, or agree to cooperate with law enforcement agencies, which will not be so easy to achieve.

In addition, to move cryptocurrencies by forcestructures will need their own wallets, which so far is hampered by the lack of relevant legal norms. Official accounting will also complicate the high volatility of the course.

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