Russian authorities are struggling to cash in on digital assets they have procured, prosecutors have warned. They also urged the government to recognize cryptocurrency as property, allow departments to have digital wallets and use crypto exchanges.
Prosecutor’s Office Insists Russian Investigators Should Have Cryptocurrency Wallets
Russian prosecutors believe that investigating authorities, among other government bodies, should be allowed to set up crypto wallets and be able to store and convert confiscated digital coins into fiat currency, business daily Kommersant reported.
The Attorney General’s office has always recommended for recognizing digital assets as property that can be seized, if acquired criminally, prosecutor Madina Dolgieva of the Bureau’s main judicial department told participants at a roundtable on e-justice.
During the meeting, organized by the Committee for Constitutional Legislation and State Building in the Federation Council, the upper house of parliament, Dolgieva pointed out that the courts are still making contradictory decisions – while some recognize crypto as property, others do not.
Cryptocurrencies are not yet fully regulated in Russia, with the current “Digital Financial Assets” law, which came into force in 2021, answering a limited set of questions. A bill introducing amendments is currently under review in the State Duma, the lower house of the Russian legislature.
Confiscating a physical wallet with virtual assets, for example, is only half the battle because the crypto still needs to be cashed out, Madina Dolgieva explained. And that’s where the problems start, she pointed out, because domestic exchanges have not yet been licensed and the prosecutor’s office cannot use foreign platforms.
The prosecutor considers it necessary to allow the investigating authorities to open their own wallets and convert the cryptocurrency, the circulation of which has increased significantly in the Russian Federation after the government introduced restrictions on fiat transfers abroad in February this year.
The suggestion comes despite opposition from the Central Bank of Russia to the legalization of crypto transactions in the country. monetary authority supported the bill filed with the Duma on the condition that even mining rewards are traded outside the country or exclusively under special “experimental legal regimes” inside Russia.
Do you think the Russian government will allow investigators and prosecutors to open crypto wallets and use digital asset exchanges? Share your thoughts on the subject in the comments section below.
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