Russia Adopts Law Allowing State to Seize Illegal Funds, Digital Assets From Officials – Bitcoin News

A law allowing law enforcement officials to request confiscation of funds illegally obtained from government officials (including cryptocurrency) has been passed by the Russian State Duma, which is the lower chamber of parliament. The state may attempt to seize the assets through court if they exceed the officials’ income.

Russia’s new law allows it to prosecute officials with illegal crypto holdings

Government officials who possess financial assets — including digital coins — exceeding their declared income from the last three years risk losing them to the state, according to a law adopted by the Russian State Duma this week. This law allows law enforcement to ask for their seizing through the judiciary.

Russia can confiscate assets such as real estate, vehicles and securities if their owners fail to show that they legally received funds for the acquisition. This applies to all officials that are required to prove their income and expenses.

The newly approved law extends the practice to funds transferred to such persons’ accounts in banks and other intermediaries, RIA Novosti reported. Prosecutors will be able to demand verification for the funds’ sources not only from traditional financial institutions and payment providers, but also from entities issuing or dealing with digital financial assets.

“Since a new instrument has appeared, accordingly, it must be declared and income from it must also be indicated,” the head of the parliamentary Financial Market Committee Anatoly Aksakov explained earlier, referring to cryptocurrency assets.

Respective amendments have been introduced to the Russian laws “On Banks and Banking Activities” and “On Combating Corruption.” The new provisions should come into force 10 days after the official publication of the law, the report noted.

These legislative changes are the result of President Vladimir Putin ordering that federal officials who have crypto assets be checked. He instructed several ministries to work with the central bank and other institutions to confirm information regarding digital assets provided by government workers in their mandatory income declarations.

This was part of the new strategy to fight government corruption, for which Putin issued a special decree. The latest legal changes have been made as authorities in Moscow are working to comprehensively regulate cryptocurrencies, filling the gaps left after the law “On Digital Financial Assets” went into force in January, 2021.

Russian President Vladimir Putin signed an order in 2020 requiring all government workers and potential candidates to public office to disclose crypto assets they had. Russian officials had to provide detailed information about where and how much they purchased the crypto assets by June 30, 2021. This obligation also applies to their families.

Is Russia likely to demand that crypto-holding officials reveal the source of their funds and provide proof? Comment below.

Lubomir Tatsev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.