Lawmakers in Russia are preparing a new cryptocurrency legislation. Russian crypto experts say it is impossible to seize crypto assets in Russia. When Russia legalizes crypto, lawmakers in Russia are preparing to work on new legislation to legalize crypto confiscation.
Russia’s Prosecutor General Igor Krasnov stated that new crypto regulations are needed to combat corruption as digital assets facilitate crime and corruption.
Krasnov noted that the government is currently developing a modified crypto criminal code for authorities to seize crypto obtained from illegal activities.
He said at a prosecutor’s conference on Wednesday that private cryptocurrencies like BTC are consistently used to commit crimes like bribery. He also said that they should legitimize the confiscation of crypto as it is a tool to launder embezzled budget funds.
Krasnov describes crypto crime trends as a serious challenge for Russia.
However, the prosecutor revealed that the “On Digital Financial Assets” (DFA) law that the country has passed in the past plays a crucial role in tackling crypto crimes.
Krasnov insists that new penal code changes are necessary to provide additional protection.
Industry experts’ opinion: Seizing crypto doesn’t work in Russia
Contrary to Krasnov’s view, local crypto experts in Russia state that no legislation will allow the government to seize crypto assets.
Nikita Soshnikov, former lawyer of Deloitte, said that it would be impossible to confiscate digital assets held in wallets like other assets.
Soshnikov said that Russia began developing proposals for crypto confiscation in 2019, years before the DFA law was passed. “The Attorney General’s Office remains a key stakeholder in this project, and in this context, the current statement is only a confirmation of the plans that have been agreed upon,” he adds.
Outside of discussions to legalize crypto confiscation, lawmakers in Russia passed a bill in July 2020 to approve the legal status of crypto and introduced a clause that it is illegal to use digital assets as a means of payment.