The State Duma of the Russian Federation has adopted, in its third reading, a law establishing procedures for the arrest and seizure of digital assets within criminal proceedings. The document introduces amendments to the Criminal Code and the Criminal Procedure Code of the Russian Federation and formally recognizes cryptocurrency as property for the purposes of criminal law. While digital assets had previously been acknowledged as objects of property rights under civil legislation, their legal status in criminal proceedings remained insufficiently defined, creating challenges in the investigation of crimes.
The adopted amendments allow investigative authorities to officially arrest and seize cryptocurrency as material evidence or as property subject to interim measures and potential confiscation. The law requires that, during investigative actions, the characteristics of digital assets be properly documented, including their type, amount, and wallet addresses. If cryptocurrency is stored on physical media, such as hardware wallets or other devices containing access keys, these devices may be seized. In cases where assets exist in digital form, they may be transferred to a special address to ensure their preservation. The specific rules governing storage and management of such assets are to be further regulated by the government.
The seizure of digital assets must be carried out with the participation of an information technology specialist in order to minimize technical risks and preserve evidentiary integrity. Confiscation of cryptocurrency is possible only by court decision and in cases where its criminal origin or use in unlawful activities is proven.
Experts note that the adoption of the law eliminates legal uncertainty and establishes a framework for law enforcement authorities to work with digital assets. At the same time, several practical issues remain unresolved, including methods for valuing volatile crypto assets and mechanisms for their long-term storage.
For cryptocurrency holders, the new law does not introduce a ban on owning or transacting digital assets. It exclusively regulates procedures within criminal proceedings. Law-abiding investors retain their rights; however, in the context of increased regulation, transparency regarding the origin of funds and proper documentation of digital asset transactions becomes increasingly important.
The adoption of the law reflects the continued development of cryptocurrency regulation in Russia and the gradual integration of digital assets into the existing legal framework.
