Russia to Introduce Rules for Confiscating Crypto: Report

The country's prosecutor general said crypto is increasingly used for bribes.

AccessTimeIconJul 7, 2021 at 11:39 a.m. UTC
Updated Sep 14, 2021 at 1:22 p.m. UTC

Russia is preparing legislation to allow law enforcement agencies to confiscate illegally obtained cryptocurrencies, Prosecutor General Igor Krasnov said, according to TASS.

Speaking at a conference in Saint Petersburg, Krasnov said cryptocurrency use by criminals is a serious issue for law enforcement. The country passed its first law regulating the digital assets last year. Now, the criminal and penal codes are being updated to allow law enforcement to "apply restrictive measures and confiscation to the virtual assets," he said.

According to Krasnov, crypto is increasingly used for bribery, making it even harder to trace than it is with fiat money.

Earlier, a representative of Russia's financial surveillance body, Rosfinmonitoring, said the agency was planning to trace bitcoin cash-outs and add a new classification code for suspicious transactions involving crypto.

Cryptocurrencies were introduced into the Russian legal system last year and deemed a taxable property. Russian public officials have been banned from owning crypto starting this year.

Recently, bitcoin has been getting traction as a fundraising tool among Russia’s civil and political activists, as well as independent journalists.


Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.