Russia Moves to Legalize Crypto Seizures in Criminal Cases

Russian lawmakers have advanced legislation to formalize the seizure of cryptocurrency assets in criminal proceedings, closing legal gaps that previously hindered investigations. The bill, now recommended for adoption in its third reading, aims to classify digital assets as property under criminal law—a MOVE targeting money laundering, corruption, and terrorist financing.

The State Duma’s Committee on State Building and Legislation spearheaded the initiative, citing the lack of crypto-specific provisions in existing procedural codes as a roadblock for enforcement. The proposed amendments WOULD explicitly grant authorities seizure powers akin to those for traditional assets.

This regulatory push aligns with global efforts to curb illicit crypto flows but introduces new complexities for exchanges operating in Russia’s gray market. Notably absent are provisions addressing cross-border seizures or private key confiscation—key challenges in crypto-related cases.