Russia drafts bill to legally confiscate stolen cryptocurrency

The crypto sector has a lot of digital assets in the centralized and decentralized financial sector. Even so, some criminals prefer to steal from legitimate traders who want to make a profit in the market. As this activity in the crypto sector is not going away anytime soon, countries around the world are looking for regulations to counter the act. Russia has announced that it will sign a new law that, for legal reasons, will seize digital assets from malicious participants.

Changes are currently underway at the Russian Prosecutor General’s office, according to local news channels. Citing a statement from Russia’s chief prosecutor Igor Krasnov, there are several changes that will criminalize stolen digital assets. According to Krasnov, if this law goes into effect, it will signal the start of the legal confiscation of digital assets stolen or illegally obtained in the country.

Russia continues to view digital assets as property throughout the legal process. With this, Krasnov believed that he did not have enough room for law enforcement. Krasnov goes deeper and hopes the country will legally define cryptocurrency in the country in the years to come. He also believes that adding digital assets to some criminal laws will help achieve this.

Russia ditches centralized exchange for DeFi exchange
This is not the first time Russia has wanted to introduce such a regulation in the legislature. According to various parties active in the country, this type of news has been circulating since 2019 without any progress. According to the head of crypto exchange Alfacash Nikita Shoshnikov, the rules still don’t exist. The country is currently selling digital assets that have been confiscated by illegal actors in the sector.

However, he said that didn’t mean they wouldn’t continue to arrest him without a legal framework. A case in point is the confiscation of $1 million worth of Bitcoin by two FSB investigators. Although the country can legally confiscate digital assets held in cold portfolios, it will face obstacles in obtaining stolen cryptocurrencies from centralized exchanges. However, as more and more Russians penetrate the DeFi sector, a window appears to be opening up for another process of grabbing stolen assets.

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