Due to the lack of comprehensive instructions in the legislation regarding the seizure and confiscation of cryptocurrency, there is now a pressing need to develop a unified mechanism for this procedure, according to the official. Currently, authorities can only seize such assets if they have access to the wallet and passwords.
Makarov shared the successful cooperation between law enforcement and a defendant in 2021, who willingly handed over cryptocurrency proceeds from drug sales. During the collaboration, the detainee demonstrated the process of converting the cryptocurrency into cash, which was then transferred to law enforcement through an intermediary. The funds were subsequently seized and placed in a specialized account controlled by the Ministry of Internal Affairs.
Alternatively, with the accused’s consent, authorities can opt for another method by transferring fiat funds to a bank account while freezing the account itself. This approach eliminates any outgoing transactions, explained the police officer.
Makarov also mentioned a case where cryptocurrency was seized “in kind” due to the defendant’s refusal to cooperate. Law enforcement was able to independently prove that the accused had obtained bitcoins through criminal activities. By confiscating the accused’s laptops, specialists successfully decrypted the information about the public and private keys used for cryptocurrency transactions.
In a recent announcement, the Bank of Russia declared its intention to monitor cross-border transfers related to the purchase of crypto assets. The regulator aims to complete the study of transaction tracking capabilities by February 9, 2024.
Bits.media provided an in-depth analysis of the current state and anticipated changes in cryptocurrency regulation in Russia.