Russian Law Enforcement to Treat Cryptocurrency as Property Under New Draft Law

Russian authorities are poised to gain expanded powers to seize and confiscate cryptocurrency during criminal investigations, as a draft law recognizing digital assets as property advances through parliament. The legislation, which passed its second reading in the State Duma this week, amends the Criminal Code to establish legal mechanisms for targeting crypto used in illicit activities.

The bill enables Russian law enforcement to compel cooperation from both domestic and international exchanges when tracing or freezing digital assets tied to criminal cases. "Law enforcement agencies will be able to officially consider digital currency as property and apply coercive measures against it," noted business daily Kommersant in its coverage of the development.

Proponents argue the measures will strengthen Russia's ability to combat cybercrime and illegal cryptocurrency flows. The MOVE represents a significant step toward formal regulatory oversight of digital assets in Russia, where cryptocurrency exists in a legal gray area despite widespread adoption.