Country Focus

Russia outlines plans to seize cryptocurrency

Russian authorities are drawing up plans to allow cops to confiscate any cryptocurrency assets linked with crime.

The Ministry of Internal Affairs and other law enforcement agencies are developing proposals for the seizure of cryptocurrencies and other virtual assets from criminals, reports Russian news outlet RBC.

The legal murkiness surrounding crypto in Russia currently hampers law enforcement’s efforts to confiscate digital assets.

Alena Zelenovskaya, head of criminal and administrative law practice at NSA Amuleks, said: “The trend of a constant increase in the number of crimes using virtual assets dictate the need to develop mechanisms for legal regulation and control over the circulation of virtual assets.”

Konstantin Golikov, co-owner and CEO of the Dailyrich.ru platform, told RBC that cryptocurrencies in Russia are a grey area.

He added: “In order to be confiscated, they must be recognised at the legislative level either as a commodity or a cash equivalent.

“If law enforcement agencies begin to discuss the forfeiture of cryptocurrency, then in fact they are launching a mechanism for legalising cryptocurrency in the territory of Russia.

“But, in my opinion, the Bank of Russia will seriously resist this.”

Security experts have spoken of their concerns that crypto can be used by organised crime groups and terrorists to transfer and launder illicit cash, and blackmailers often demand ransoms are paid in Bitcoin.

Last month, a Russian nuclear researcher was jailed for three years for illegally mining cryptocurrency at work.

Andrei Rybkin and two other workers were sentenced over a string of offences including propagating viruses and gaining illegal access to information by using a professional position, according to Latvian-based Russian news website Meduza.

The men exploited unused computers and a LAN to mine cryptocurrency between May and September 2017, often at night.

Sam Webb

Sam has nearly two decades of reporting experience and has previously worked for The Mail, The Sun, The Mirror, The Daily Star and numerous trade publications. As a freelancer, he has had stories picked up by media outlets throughout the world including Fox News, The Times and News.com.au. He focuses on foreign news and is keenly interested in how crypto is used by criminals and terrorists.

Disqus Comments Loading...

Recent Posts

The surge of Bitcoin NFTs: Everything you should know about Bitcoin ordinals

From digital art to real-estate assets, NFTs have become a significant attraction for investors who…

3 weeks ago

MEXC Partners with Aptos to Launch Events Featuring a 1.5 Million USDT Prize Pool

Singapore, Singapore, 21st October 2024, Chainwire

3 weeks ago