Prosecutor General’s Office Proposes Confiscation of Cryptocurrency
The Prosecutor General’s Office of the Russian Federation has suggested providing investigating authorities with the ability to open cryptocurrency wallets and accounts for the purposes of confiscation. The move would see digital currencies transferred into state income. Representing the main criminal administration of the Prosecutor General, Madina Dolgieva unveiled the proposals at a round table meeting in the Federation Council.
The Prosecutor General’s Office called for improvements to the confiscation mechanism, citing it as an additional procedural measure. Dolgieva explained that investigating authorities could open their own cryptocurrency accounts and wallets under governmental decree to avoid having to amend the Code of Criminal Procedure.
In addition, amendments to the law on enforcement proceedings would be required to enable the Federal Bailiff Service (FSSP) to sell confiscated cryptocurrency assets. Potential sales methods could include amendments to the enforcement proceedings law or a further government decree.
The proposals represent further efforts by the Russian authorities to regulate the use of digital currencies, which have been at the forefront of the Russian government’s attentions for some time. The Prosecutor General’s Office’s proposals, however, could have international implications, given the global nature of cryptocurrency transactions.