Russia to Treat Cryptocurrencies as Property Under New Law: What It Means for 2025
- Why Russia Is Finally Defining Crypto as Property
- How Russian Authorities Will Seize Crypto Assets
- The Practical Impact on Crypto Investigations
- What's Next for Russia's Crypto Regulation
- FAQ: Russia's Crypto Property Classification
In a landmark move that could reshape Russia's crypto landscape, lawmakers have advanced legislation classifying digital assets as property - giving law enforcement sweeping new powers to seize cryptocurrencies in criminal cases. The bill, which passed its second reading in the State Duma this week, establishes clear protocols for confiscating crypto while addressing long-standing legal gray areas. Here's why this development matters now more than ever.
Why Russia Is Finally Defining Crypto as Property
For years, Russian courts have treated digital currencies as property in practice, but the penal code never formally recognized this status - until now. "These amendments bring criminal law in line with existing judicial practice," explains Mikhaïl Ouspenski of the Russian Lawyers' Association. The change comes as crypto-related crimes surge, with cases ranging from armed robberies targeting crypto bloggers (like the recent Ryazan incident where thieves stole $160,000 worth of crypto) to sophisticated cyber fraud operations.
How Russian Authorities Will Seize Crypto Assets
The new law outlines two primary confiscation methods:
- Transferring coins to government-controlled wallets
- Physically securing hardware wallets as evidence
Investigators must document precise details including cryptocurrency type, quantity, and wallet addresses. Cold wallets will be stored as sealed physical evidence, while their contents may be moved to secure digital storage. Interestingly, the law even allows authorities to request cooperation from foreign exchanges like BTCC - a provision that could test international legal boundaries.
The Practical Impact on Crypto Investigations
Dmitry Kirillov, head of digital law at Lidings firm, notes: "We've reached a tipping point where crypto appears in nearly 30% of financial crime cases." The legislation provides much-needed clarity for forensic experts who previously lacked standardized procedures. Now, officials can:
- Calculate crypto values using market rates (sourced from CoinMarketCap)
- Seize assets equivalent to alleged damages
- Compensate victims through liquidated crypto holdings
What's Next for Russia's Crypto Regulation
While the bill has cleared major hurdles, final implementation awaits:
| Milestone | Timeline |
|---|---|
| Government decree on storage/transfer protocols | Post-enactment |
| Parliamentary approval of final procedures | 2025 Q1 expected |
An intriguing last-minute amendment permits crypto transfers to secure addresses when "technically feasible" - leaving room for innovative compliance solutions.
FAQ: Russia's Crypto Property Classification
When does the new law take effect?
The legislation will become active after final parliamentary approval and publication, expected by early 2025.
Can Russian police seize crypto from foreign exchanges?
The law authorizes requests to international platforms, but compliance depends on individual exchange policies and local laws.
How will seized crypto be valued?
Authorities will use real-time market data from established trackers to determine fair market value at time of seizure.
