Russia’s Supreme Court is pushing to classify cryptocurrency as property in penal cases, aiming to strengthen law enforcement’s ability to track, freeze, and confiscate illicit digital assets.
Russia Supreme Court Seeks Legal Clarity for Crypto in Criminal Cases
Russia’s Supreme Court is advancing efforts to classify cryptocurrency as property in criminal cases, a move that could give authorities greater power to seize digital assets tied to illegal activities. According to a Tass report on February 20, Supreme Court Chairperson Irina Podnosova discussed the initiative during a meeting attended by Russian President Vladimir Putin and high-ranking judges.
With the spread of cryptocurrency in the economy, there has been a rise in crimes where the digital currency is either the means of committing the crime, the criminal income, or the object of the offense, Podnosova stated.
She confirmed that the Supreme Court is involved in drafting a legislative proposal aimed at recognizing digital currency as property for penal proceedings. This legal framework would allow law enforcement agencies to track, freeze, and confiscate cryptocurrencies involved in criminal activities.
Russia’s Ongoing Legal Developments in Crypto
This is not the first time Russia’s Supreme Court has addressed cryptocurrency in legal proceedings. In 2019, it ruled that converting bitcoin into rubles could constitute money laundering if the funds were obtained through illegal means, such as drug-related transactions.
In 2021, the court legally recognized WMZ, an electronic currency used in the Webmoney Transfer system, as an object of civil rights. This ruling set an important precedent for the legal treatment of digital assets in Russia, signaling the country’s intent to regulate the growing crypto market.
Growing Crypto Crime Concerns
Despite stable crime patterns in Russia where property crimes account for 38%, violent crimes for 24%, and offenses against public security for 24% the rise of cryptocurrency in illicit activities has raised concerns among policymakers.
Classifying digital assets as property would help law enforcement respond more effectively to financial crimes involving crypto. This shift also reflects a broader global trend, as governments worldwide seek legal clarity in regulating digital finance.
What’s Next?
As Russia works to formalize its cryptocurrency regulations, this proposed classification could have far-reaching implications for digital asset holders, exchanges, and legal authorities. Lawmakers are expected to refine the legal framework in the coming months.
For crypto investors and businesses operating in Russia, staying informed about these legal changes will be essential.
