The Prosecutor General’s Office of the Russian Federation has insisted that the term “cryptocurrency” should be added to the country’s legislation. It would permit Moscow’s authorities to take digital assets involved in criminal activities.
Russian Prosecutor General’s Office Prepares Amendments Allowing Seizure of Cryptocurrency
With cryptocurrencies being only partially regulated through the law “On Digital Financial Assets,” work is underway in Russia to adopt legislation introducing comprehensive rules for the turnover of bitcoin and the like. The Russian Prosecutor General’s Office has joined these efforts as it wants the term “cryptocurrency” added to the legal texts.
“We have developed amendments to a number of regulatory legal acts so that cryptocurrencies in illegal circulation are not only recognized as а subject of a crime, but there’s also a legal possibility of their arrest and confiscation,” Russia’s Prosecutor General’s Igor Krasnov said in an interview with RIA Novosti news agency.
Russian legislators are considering other legislative amendments to create a legal framework that allows for cryptocurrency. Unfortunately, many activities that are related to digital currencies remain beyond the reach of current laws, such as taxation and mining.
Moscow officials are considering taxing cryptocurrency mining and recognizing it as an entrepreneurial activity. However, the Central Bank of Russia is still opposed to digital currencies being legalized as payment methods. The regulator claims these represent “money surrogates” that are banned in Russia.
The monetary authority is currently developing a digital version of the national fiat, insisting that’s exactly what the Russians need. The digital ruble will provide а low cost and reliable payment solution that also protects personal data, the head of the CBR, Elvira Nabiullina, promised in November. In January 2022, Bank of Russia will begin trials for CBDC.
Last month, the Russian Prosecutor General’s Office also proposed recognizing cryptocurrency and other virtual assets as property in the country’s Criminal Code. Igor Krasnov, the lower chamber of parliament, explained that court proceedings will use the legal definition.
Krasnov revealed also that his department had already prepared a bill that would regulate it and expressed optimism that lawmakers will support it. Digital currencies such as bitcoin have been recognized as property under several other Russian acts like the laws on bankruptcy and enforcement proceedings, the anti-money laundering legislation, and the country’s anti-corruption law.
Do you expect Russia to add the term “cryptocurrency” to its legislation? Please comment below with your opinions.
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