Russian investigators are pressing parliament and the government in Moscow for permission to open their cryptocurrency wallets. This would allow law enforcement agencies to seize digital assets during criminal cases and eventually sell them, something authorities in the US and Europe are already doing.
Russian prosecutors are pressing for powers to confiscate and auction cryptocurrencies
The Russian Federation Prosecutor General’s Office proposes to allow investigative bodies to create crypto accounts and wallets under their control to store hacked digital currencies that can later be sold for the benefit of the state.
Speaking in the Federation Council, the upper house of the Russian parliament, the representative of the main criminal procedure department in the office, Medina Dolgeva, insisted that there was no need even to change the law to grant such powers.
“The Prosecutor’s Office has consistently called for the development and improvement of the confiscation mechanism as another procedural measure,” Dolgeva said during a roundtable discussion. Interfax news agency quoted her as saying:
We can allow investigative authorities to open their cryptocurrency accounts and wallets.
Dolgeva explained that this could be done through a government decree. “It is not necessary to make changes to the Code of Criminal Procedure because this is a long process,” the law enforcement official explained.
It also believes that it is necessary to issue a separate government decree or amend the existing law governing enforcement procedures in order to authorize the Russian Federal Bailiff Service to auction off the captured cryptocurrency.
Dolgieva made the suggestions after the head of the Russian Prosecutor General’s Office, Igor Krasnov, demanded earlier this week that cryptocurrency exchanges offering services to Russian clients be required to register in the country and share user data with Russian law enforcement.
Krasnov also urged the adoption of more comprehensive regulations for digital assets in Russia, insisting that simply recognizing cryptocurrency as property is not enough to combat criminal flows in the now difficult international situation, which he believes increases the risk of exploiting vulnerabilities through cryptography.
US and European law enforcement agencies have already established procedures for seizing and selling crypto assets related to crime. A few days ago, the US Department of Justice said it had seized more than $112 million worth of cryptocurrency linked to fraudulent investment schemes. In July last year, the Finnish Customs Service announced that it had sold confiscated bitcoins worth more than $50 million.
Do you think the Russian government will allow prosecutors and investigators to open cryptocurrency wallets? Tell us in the comments section below.
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