TLDR
- President Vladimir Putin signed a law that allows authorities to seize and confiscate cryptocurrency in criminal cases.
- The statute classifies digital currencies as intangible property under Russian law.
- Investigators must document the type, quantity, and wallet addresses of seized crypto assets.
- Authorities can confiscate hardware wallets, computers, and servers linked to investigations.
- Officials may transfer seized cryptocurrency into government-controlled wallet addresses.
President Vladimir Putin has signed a law that allows authorities to seize cryptocurrency in criminal cases. The statute classifies digital currencies as “intangible property” and gives courts formal confiscation powers. The measure sets procedures for freezing, documenting, and transferring digital assets during investigations.
Russia Establishes Legal Basis for Crypto Seizure
The law defines cryptocurrency as property under criminal procedure rules. Therefore, investigators can freeze holdings and include them in case files. Courts can order confiscation to satisfy criminal judgments or civil claims. Authorities can also take control of wallets and related hardware.
Investigators must record the type and quantity of seized cryptocurrency. They must also list wallet addresses linked to suspects in official documents. Officers can confiscate servers, computers, and hardware wallets tied to alleged offenses. Where possible, officials may transfer coins into government-controlled wallets.
The statute allows cooperation with foreign exchanges during investigations. Authorities may request that overseas platforms freeze or return assets. Executive bodies will issue storage and handling standards later. The rules will take effect ten days after official publication.
Officials said the framework creates a structured seizure process. They require clear documentation before any transfer occurs. Agencies must secure digital assets in a controllable form. The law aims to standardize enforcement practices nationwide.
Bitcoin and Ethereum Access Limited Under New Rules
Russia plans to finalize a broader national crypto framework by July 1, 2026. The model will combine investor limits with stricter platform licensing. Non-qualified investors will face a 300,000 ruble purchase cap. Access will focus on liquid tokens such as Bitcoin and Ethereum.
Qualified investors will avoid volume limits under the proposal. However, regulators will bar them from privacy coins, including Monero, Zcash, and Dash. Exchanges and brokers must obtain licenses before July 2026. Authorities may block unlicensed platforms after that deadline.
From July 1, 2027, unlicensed intermediary activity may trigger criminal penalties. Courts could impose prison terms of up to seven years. Domestic crypto payments will remain prohibited under existing rules. Illegal payments may lead to fines and confiscation starting in 2026.
At the same time, authorities will allow cross-border settlements using digital assets. Businesses may use cryptocurrencies and stablecoins for foreign trade transactions. Holders of foreign exchange accounts must report them to the Federal Tax Service. Investigators will still need to link wallets to specific suspects during cases.
