Russian lawmakers have moved forward with legislation that will legally allow for the regulation of the seizure of crypto assets in criminal proceedings, closing legal gaps that complicated previous investigations.
Crypto Seizure Bill Advances in State Duma Committee
On Monday, the Committee on Construction and State Legislation in the State Duma, the lower house of the Federal Assembly of Russia, advanced a bill to regulate the seizure of crypto-assets to a hearing.
In an official Telegram message, Russia’s ruling political party, the All-Russian Political Party United Russia, revealed that the law has been recommended for adoption in its upcoming third reading.
Although cryptocurrencies are already recognized as property under several laws, their status has not been established in the laws of criminal procedures, the statement noted, which has made criminal investigations and enforcement of property claims difficult.
As a result, the recently passed crypto bill is designed to reduce the risks associated with the use of cryptocurrencies in criminal activities, such as money laundering, corruption, and terrorist financing.
To address this, the bill proposes the recognition of digital goods as property under the Criminal Code and the Criminal Procedure Code of the Russian Federation. In addition, it intends to amend the Code of Criminal Procedure with a new article to regulate the actions of investigators when they find digital assets subject to confiscation.
The law will also give the relevant investigating authorities the power to seize assets by controlling physical assets, including servers, computers, and cold wallets, or by transferring assets to a special address to ensure their safekeeping. Finally, it will introduce a way to freeze digital currency to seize or secure a public claim.
“The adoption of the law will eliminate the legal vacuum and create effective ways for law enforcement agencies to work with modern digital assets, based on international recommendations and the successful experience of foreign legal systems,” said Pavel Krasheninnikov, head of the State Duma Committee for State Building and Legislation.
Russia Prepares for New Control Zone
If approved, the bill would complement Russia’s upcoming crypto framework, which is expected to take effect in July. In December, the Central Bank of Russia presented comprehensive new regulatory proposals to enable retail and professional investors to purchase digital assets through licensed platforms in the country.
The new rules will allow unqualified investors to buy up to 300,000 rubles a year in most liquid cryptocurrencies after passing a knowledge test. In addition, qualified investors will be able to purchase unlimited amounts of any digital asset after passing the risk awareness test.
Under the proposed framework, transactions must be conducted through already licensed platforms, including exchanges, brokers, and trust managers, with additional requirements applied to custodians and exchange services.
Additionally, citizens will be allowed to buy crypto assets abroad and transfer their holdings through Russian-licensed intermediaries, subject to required tax reporting. The leading stock exchanges, Moscow Exchange (MOEX) and SPB Exchange, shared their support for the central bank’s proposed regulatory framework.
As reported by Bitcoinist, institutions have confirmed that they are ready to launch crypto trading services under the upcoming regulations as soon as they are established. The Moscow Exchange has confirmed that it is actively working on solutions to serve the cryptocurrency market, with plans to offer them as soon as the relevant regulations are in place.
Meanwhile, SPB Exchange also said it is ready to participate in joint efforts to develop the proper infrastructure within the regulated market, highlighting the Central Bank’s efforts to create “transparent and secure conditions” for crypto trading.
The total crypto market capitalization is at $2.94 trillion in the one-week chart. Source: TOTAL on TradingView
Featured image from Unsplash.com, Chart from TradingView.com
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