The State Duma Approves Seizure Procedures for Cryptocurrency in Criminal Cases

The State Duma of the Russian Federation has passed a law in the third reading clarifying procedures for seizing and confiscating digital assets in criminal proceedings. The document amends the Criminal Code and the Criminal Procedure Code of the Russian Federation and officially recognizes cryptocurrencies as property under criminal law. Previously, digital assets had been recognized as objects of property rights under civil law, but their legal status in criminal proceedings had not been fully defined, leading to numerous challenges during criminal investigations.

This revision allows investigative authorities to formally seize and confiscate cryptocurrencies either as physical evidence or as property that may be subject to temporary measures and potential confiscation. The law requires detailed documentation of digital asset characteristics during investigations, including type, quantity, and wallet address. If cryptocurrencies are stored on physical media such as hardware wallets or other devices containing access keys, these devices may also be seized. If the assets are stored digitally, they can be transferred to a dedicated address to ensure their secure preservation. Specific rules regarding the storage and management of such assets will be further developed by the government.

The seizure of digital assets must be carried out with the participation of information technology experts to minimize technical risks and ensure the integrity of evidence. Confiscation of cryptocurrencies can only be carried out after a court ruling and must prove that the assets originate from criminal activity or are used for illegal purposes.

Experts note that the passage of this law eliminates legal uncertainties and provides a regulatory framework for law enforcement agencies handling digital assets. However, several practical issues remain unresolved, including how to assess highly volatile cryptocurrencies and their long-term storage mechanisms.

For cryptocurrency holders, the new law does not prohibit owning or trading digital assets but regulates the criminal procedure process. Law-abiding investors still retain their rights, but under stricter regulation, transparency of the source of funds and compliance records of digital asset transactions are becoming increasingly important.

The enactment of this law reflects Russia’s ongoing efforts to regulate cryptocurrencies and the gradual integration of digital assets into the existing legal system.