The Ministry of Justice in Russia is formulating a new bill that would legally categorize digital currencies, such as Bitcoin, as assets that can be seized or confiscated during criminal investigations. This was revealed by Vadim Fedorov, the Russian Deputy Minister of Justice, during a recent legal forum addressing the challenges brought about by emerging technologies.
As initially reported by TASS, the proposed legislation would empower law enforcement to confiscate physical devices like hardware wallets or storage drives harboring access to digital currencies. Moreover, it would allow investigators to seek court injunctions to halt crypto transactions.
“The bill sets forth special requirements to safeguard these assets. Depending on the specific nature of the digital currency, an investigator could seize a physical device with access codes or secure a court-imposed suspension of transactions,” Fedorov explained.
This draft is a part of the Russian government’s endeavor to modernize its criminal justice tools to better address the increasing involvement of digital assets in financial crimes. The authorities are looking to plug legal gaps that currently hinder law enforcement from effectively dealing with crypto assets implicated in crimes.
The bill acknowledges the technical intricacies involved in managing crypto. It thus calls for the expertise of specialists who can ascertain the best ways to protect digital assets, ensuring their preservation for potential future seizures or victim restitution.
Currently, the bill is being primed for its first reading in the State Duma, the lower house of the Russian parliament.
