Russian government is seeking legal means to seize virtual assets like cryptocurrencies because they’ve been able to form a more-traditional forms of property.
In an effort to fight cybercrime, the Interior Ministry intends to develop legislation that enables institutions to criminal law to hand over the power of the digital gain illegitimate and wants the proposal on the books in December 2021, according to reports from Russian news sources RBC Thursday.
The Interior Ministry will join Rosfinmonitoring financial regulator, the Office of the Attorney General, Committee of Investigation, Department of Justice, Federal Customs Service, Federal Security Service and the Supreme Court in developing the proposal.
The long-awaited regulation crypo handle more general asset has been held in the Russian parliament, further complicating the issue. A legal definition cryptos, perhaps as a commodity or cash-equivalent, is necessary to enable confiscation, according to the report. However, the definition set out in the new rules may not be appropriate in this case.
There are other potential problems down the road to the plan, too. Regulators seized crypto aware of the difficulties that are in various kinds of wallet is protected by encryption and passwords of users, the sources told RBC.
However, authorities believe they may be able to work with the exchange to isolate and freeze funds, said Nikita Kulikov, a member of the expert council of the State Duma and founder PravoRobotov Autonomous Non-Profit Organization.
In addition, the institution may have to develop their own crypto wallet and find a way to exchange digital assets became fiat. “For this purpose, they can create a country-exchange crypto and crypto-ruble at a stable level where they will keep the funds withdrawn,” said Kulikov.
While moving law enforcement to become acquainted with cryptocurrency, Russia’s central bank is to maintain ignorance. This October, the chairman of the Bank of Russia Elvira Nabiullina said he saw no reason to press for the launch of digital ruble following an internal investigation.
Russian rubles and BTC image via Shutterstock