Crypto confiscation framework approved by State Duma
Legal experts warn Russia’s new crypto seizure framework lacks clarity on asset valuation, custody security, and cross-border exchange cooperation.
Russia’s State Duma has passed legislation establishing procedures for the seizure and confiscation of cryptocurrencies in criminal investigations. The law formally recognises digital assets as property under criminal law.
The bill cleared its third reading on 10 February and now awaits approval from the Federation Council and presidential signature.
Investigators may seize digital currency and access devices, with specialists required during investigative actions. Protocols must record asset type, quantity, and wallet identifiers, while access credentials and storage media are sealed.
Where technically feasible, seized funds may be transferred to designated state-controlled addresses, with transactions frozen by court order.
Despite creating a legal basis for confiscation, the law leaves critical operational questions unresolved. No method exists for valuing volatile crypto assets or for their storage, cybersecurity, or liquidation.
Practical cooperation with foreign crypto platforms, particularly under sanctions, also remains uncertain.
The government is expected to develop subordinate regulations covering state custody wallets and enforcement mechanics. Russia faces implementation challenges, including non-custodial wallet access barriers, stablecoin freezing limits, and institutional oversight risks.
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