Russia Officially Recognizes Cryptocurrencies as Property in 2025: What It Means for Investors

• Why Russia Finally Decided to Classify Crypto as Property
• The New Rules for Crypto Confiscation
• How Valuation and Victim Compensation Works
• What This Means for Crypto Investors in Russia
• The Road Ahead for Russia's Crypto Landscape
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In a landmark move, Russian authorities have passed legislation treating cryptocurrencies as property under the law. This development, finalized in November 2025, establishes clear protocols for government seizure of digital assets during criminal investigations while providing legal certainty for crypto holders. The new framework allows Russian law enforcement to request cooperation from international exchanges and introduces standardized valuation methods for confiscated assets.

Why Russia Finally Decided to Classify Crypto as Property

After years of legal ambiguity, Russia's parliament has taken decisive action to bring cryptocurrency regulation in line with traditional asset classes. The legislation, which passed its second reading in the State Duma this month, amends both the Criminal Code and Criminal Procedure Code to explicitly define digital currencies as property. This classification isn't just bureaucratic semantics - it fundamentally changes how authorities can investigate crypto-related crimes and protect investors' rights.

The New Rules for Crypto Confiscation

Russian law enforcement now has two primary methods for seizing digital assets: direct wallet transfers or physical custody of hardware wallets. The legislation introduces meticulous documentation requirements, forcing investigators to record exact cryptocurrency types, quantities, and wallet addresses in official protocols. Cold storage devices must be sealed as physical evidence, while hot wallets can be transferred to government-controlled addresses.

Interestingly, the law contains provisions allowing cooperation with foreign exchanges - a notable development given Russia's historically frosty relations with international crypto platforms. As Dmitry Kirillov, head of digital legal practice at Lidings law firm, observed: "These amendments finally provide clear guidelines for situations we've been seeing in courts for years."

How Valuation and Victim Compensation Works

One of the law's most practical aspects establishes standardized methods for calculating cryptocurrency values during criminal proceedings. Investigators can now request official market price data to determine economic damages and appropriate compensation amounts. Deputy Justice Minister Elena Ardabyeva clarified that seizure amounts will be tied directly to proven damages in each case.

The timing couldn't be more relevant. Just last week, Russian courts sentenced two individuals to eight years prison for forcing a crypto blogger to transfer over 13 million rubles ($160,000+) in digital assets - funds that authorities successfully recovered and returned to the victim.

What This Means for Crypto Investors in Russia

While the legislation primarily targets criminal investigations, it creates important precedents for all crypto holders:

• Legal recognition of digital assets as property strengthens ownership claims
• Standardized valuation methods reduce disputes over asset worth
• Clear seizure protocols protect against arbitrary confiscation

As noted by BTCC market analysts, the law could paradoxically boost investor confidence by reducing regulatory uncertainty - though they caution that proper wallet security remains essential.

The Road Ahead for Russia's Crypto Landscape

The government still needs to finalize operational details through supplementary regulations, particularly regarding storage procedures for seized assets. However, the Core framework establishes Russia as one of the few major economies with comprehensive crypto confiscation protocols. Mikhail Uspensky of the Russian Lawyers' Association points out that courts were already treating crypto as property - this law simply codifies existing practice.

With crypto-related crimes increasing 47% year-over-year according to TradingView data, these measures aim to curb illegal activity while protecting legitimate investors. The legislation notably avoids restricting personal crypto ownership, focusing instead on establishing clear rules for criminal investigations.

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What does Russia's new crypto property law actually do?

The law formally classifies cryptocurrencies as property under Russian law, establishes procedures for government seizure of digital assets during investigations, and creates standards for valuing confiscated crypto.

Can Russian authorities seize crypto from foreign exchanges?

The legislation allows Russian officials to request cooperation from international exchanges, though compliance WOULD depend on each platform's policies and local laws.

How does this affect ordinary crypto investors in Russia?

For legitimate investors, the law provides clearer legal standing for crypto ownership while establishing protections against arbitrary seizure. However, it emphasizes the importance of maintaining proper transaction records.