Russia working on legislation for confiscation of illegally acquired crypto

A legislation that would authorize law-enforcement agencies to confiscate illegally acquired cryptocurrencies is now being eyed to be passed in Russia.

According to TASS, no less than Igor Krasnov, the Prosecutor General of Russia, provided the report pertaining to the legislative act.

It can be recalled that Russia introduced cryptocurrencies into its legal system as a taxable value back in 2020 in response to reports from the Russian Prosecutor General that the assets were being used for bribing.

A growing problem

In a conference held in Saint Petersburg, the Prosecutor General pointed out in a speech that the misuse of crypto by criminals ended up as a problematic issue for law enforcement agents.

He also added that the increased use of crypto for bribery posed a challenge, as it was more difficult to trace compared to fiat money.

In this regard, Igor Krasnov said that last year, his country already issued the first law to control digital assets as well as their usage. Moreover, Russia has also recently updated its penal and criminal codes – a move that is expected to ensure that law enforcement agencies enforce a restrictive measure in confiscating the said digital assets.

Russia still not friendly towards crypto

Since the start of the year, Russia has been very hard on digital currencies and its take on the matter stands up to this time.

In April 2021, all officials that work in both federal and local government agencies had to get rid of their crypto investments and were banned by the government from owning cryptocurrencies.

The prohibition which was a part of the government’s efforts to reduce corruption also extended to the board members of every Russian bank.


Image courtesy of Cointelegraph News/YouTube

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