Russia drafts bill to legally confiscate stolen crypto

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TL; DR Breakdown

  • Russia wants a new bill to make crypto confiscation legal
  • The Attorney General wants to add the bill to a section of criminal law
  • Russia witnesses max exodus of users from centralized exchanges

The crypto sector has abundant digital assets in the centralized and decentralized finance sector. Even with this, some criminals prefer to steal from legitimate traders looking to make profits in the market. With these activities not abating soon in the crypto sector, countries worldwide are fishing for regulations to counter such acts. Russia has announced that it will sign a new bill into law that would see digital assets seized from malicious actors confiscated on a legal basis.

The Attorney General wants the bill added to criminal law

According to a local news station, the amendment is presently in the works at the Attorney General’s office in Russia. Quoting a released statement from the Attorney General of Russia, Igor Krasnov, several amendments are in place to make stolen digital assets a criminal offense. According to Krasnov, if this law comes into place, it would signal the beginning of a legal seize of stolen or illegally gotten digital assets in the country.

Russia continues to see digital assets as properties during court proceedings. With this, Krasnov feels that it does not provide adequate room for enforcing the law. Going deeper, Krasnov hopes that the country will legally define crypto in the country in the coming years. He also believes that adding digital assets to a section of criminal law would help the achieve that.

Russians are dumping centralized exchanges for DeFi exchanges

This is not the first time that Russia would be planning to debut such regulation enmeshed in the legislature. According to various active parties in the country, this kind of news has been flying around since 2019 without a headway. According to a top executive of Alfacash crypto exchange, Nikita Shoshnikov, the rule is not yet in place. The country presently sells digital assets seized from illicit actors in the sector.

However, she said that does not mean they will not continue to seize them without a legal framework. A typical example was the confiscation of Bitcoin worth $1 million from two investigators in the FSB. Even though the country can officially seize digital assets stored in cold wallets, it would face an obstacle to obtaining stolen crypto from centralized exchanges. However, with more Russians moving into the DeFi sector, there seems to be a window for another turgid process of confiscation of stolen assets.

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