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crypto.news 2025-05-21 12:57:14

Russia moves to seize crypto: new bill classifies Bitcoin as property

Russia moves to seize crypto: new bill classifies Bitcoin as property

The Russian Ministry of Justice is preparing a bill to classify crypto assets as property subject to possible confiscation. Russia is seeking to crack down on crypto-related crime with a new measure. According to local reports dated May 19, the Russian Ministry of Justice is drafting a bill that would classify crypto assets as property, making them subject to seizure in criminal proceedings. “The Ministry of Justice has developed a bill that classifies digital currency as property for the purposes of arrest and subsequent confiscation,” Deputy Minister of Justice, Vadim Fedorov. Fedorov noted that experts would be involved to ensure that these assets could be seized and securely handled. This includes confiscating physical wallets and the necessary credentials, such as seed phrases. Courts may also impose bans on wallet transactions. You might also like: Russia to establish crypto exchange for ‘super-qualified investors’ under a pilot regime Russians are increasingly turning to crypto for crime The proposed changes to seizure procedures come in response to the growing use of crypto by criminals in Russia. Authorities have cited the sale of drugs through anonymous darknet markets, often facilitated by crypto transactions, as a key concern. You might also like: Exploring crypto’s most notorious dark web cybercrime forum Fedorov acknowledged the unique challenges of seizing crypto assets and explained why such assets appeal to bad actors. “The attractiveness of this type of asset for criminals is explained by a number of factors, primarily anonymity and the lack of centralized control. Digital currency cannot be physically seized and placed in a safe, as is the case with cash and valuables,” Fedorov explained. One example is Russia’s darknet market Kraken, which has seen a 68% increase in crypto transactions. This comes despite a global crackdown on darknet platforms, including the shutdown of another Russian-based marketplace, Hydra, in April 2022. Since Hydra’s closure, Kraken, not to be confused with the regulated crypto exchange of the same name, has become the largest darknet market in Russia. Read more: Russia-focused darknet crypto sales jump 68% as global revenue falls: Chainalysis

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