- Russia seeks to classify cryptocurrency as property to combat digital asset crimes.
- Legal recognition of crypto aims to enhance law enforcement’s seizure capabilities.
- Past rulings set precedents for stricter regulations on digital currencies in Russia.
Russia’s Supreme Court is pushing forward with plans to classify cryptocurrency as property in criminal cases. The goal is to strengthen legal tools against crypto-related crimes. As digital assets become more common in illegal activities, law enforcement struggles to track and confiscate illegal funds.
This new plan aims to create a clear legal system for dealing with digital currencies in criminal proceedings. Chairperson Irina Podnosova highlighted the need for this change during a recent meeting with judges and President Vladimir Putin, pointing to the increase in crimes involving cryptocurrency.
Legal Framework Upgrade for Crypto Crime
With digital currencies becoming more widely used, authorities have faced obstacles in prosecuting crimes connected to crypto assets. Digital currencies often act as tools for criminal activities, including money laundering and fraud. Seeing cryptocurrency as property would allow law enforcement to seize, freeze, and track illegal digital funds more effectively.
Related: Russia Sentences Citizen Over Crypto Transfers to Ukraine
Podnosova stated that the Supreme Court is developing a legislative proposal to define cryptocurrency as property for penal cases. This classification would help fix legal gaps that criminals use to conceal transactions. By adding digital assets into Russia’s judicial system, authorities intend to improve their ability to fight financial crimes linked to cryptocurrency.
Russia’s Past Crypto Rulings Shape New Push
This new plan follows earlier efforts by Russian courts to regulate cryptocurrency-related activities. In 2019, the Supreme Court ruled that changing bitcoin into rubles counted as money laundering when linked to criminal activity. This decision reinforced the use of anti-money laundering laws to digital currencies.
In 2021, the court recognized WMZ, the electronic currency used in the WebMoney Transfer system, as a legally defined asset. This ruling set the stage for treating digital assets within the legal system. The latest efforts build upon these past decisions, showing Russia’s plan to bring cryptocurrency under stronger regulation.
Crime Stats Fuel Need for Crypto Rules
Even though overall crime rates in Russia are stable, digital assets have increasingly been used in illegal transactions.
Related: Russia Imposes Six-Year Crypto Mining Ban Across 10 Regions
Property crimes make up 38% of reported offenses, while violent crimes and public security violations each account for 24%. Criminals often take advantage of the lack of legal clarity around digital assets to avoid detection.
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