The Russian Prosecutor-General’s office is working on a proposal to enable investigators to confiscate and liquidate criminals’ cryptocurrency holdings, with proceeds potentially going to the Treasury. However, there are indications that converting these tokens to fiat currency might be a challenging task. The proposal, which was initially reported in April, appears to have progressed since then, according to Stavropol Plus.
Diana Bersey, an Associate Professor at the Stavropol branch of the Russian Presidential Academy of National Economy and Public Administration, shared Madina Dolgieva’s (Judiciary Director at the Prosecutor-General’s Office) views on the matter. Dolgieva believes that relevant changes could be made via a government decree, avoiding the need for changes to the criminal code. Dolgieva also thinks it’s necessary to amend enforcement proceeding laws to allow the Federal Bailiff Service to sell confiscated coins.
Although cryptocurrency doesn’t have legal status in Russia, previous court rulings have considered crypto assets as property in both civil and criminal cases. With this perspective, prosecutors could potentially treat tokens as assets and seize them accordingly. Dolgieva suggests that a few adjustments to the existing confiscation mechanism would allow investigating authorities to open their own cryptocurrency accounts and wallets to hold the seized coins while awaiting court approval for liquidation.
Russian lawmakers have expressed optimism about legalizing the use of tokens in international trade and industrial cryptocurrency mining before the end of the year. However, the Central Bank’s crypto-skeptic stance could pose additional hurdles. Earlier this month, a security firm reported that nearly $300 million worth of cryptocurrency trades per day were taking place on Russia’s rapidly growing P2P market.
The proposal by the Russian Prosecutor-General to confiscate and liquidate criminals’ crypto assets raises some potential concerns. While the process could help curb illegal activities associated with cryptocurrencies, challenges such as converting tokens to fiat currency and the possible impact on innocent crypto holders cannot be overlooked. Assessing the feasibility and efficiency of this proposal will be crucial for creating a balanced regulatory approach that will benefit both government and law-abiding crypto enthusiasts in Russia.
Source: Cryptonews
