Russia Moves to Enable Crypto Seizures Before Full Regulation Set

TLDR

• The Russian State Duma committee has approved a bill allowing cryptocurrency seizures in criminal cases.
• The draft law defines digital currencies as property under Russia’s Criminal and Criminal Procedure Codes.
• Law enforcement will be able to seize crypto using physical devices or transfer it to special government-controlled wallets.
• The bill aims to close legal gaps that hinder asset confiscation in digital currency-related investigations.
• Russia is still developing a full regulatory framework for cryptocurrency use and transactions.

Russia is moving quickly to enable cryptocurrency seizures in criminal cases, even before fully regulating digital assets and transactions. A key parliamentary committee has approved a draft law that introduces new powers for law enforcement to seize digital currencies. This development comes as broader legislation on crypto mining, circulation, and trading is still pending finalization.

Committee Approves Seizure Law Before Full Regulation

The State Duma’s Committee on State Building and Legislation has backed the crypto seizure bill for final reading in parliament. The bill allows the confiscation of digital currencies during criminal investigations, even though broader crypto laws are still incomplete. It defines cryptocurrency as property under Russia’s Criminal and Criminal Procedure Laws.

The committee stated the law will close legal gaps that obstruct asset seizure in criminal cases involving digital currencies.

Law enforcement will be permitted to access both physical storage and transfer seized coins to official wallets.

The bill also sets rules for how investigators can handle digital assets suspected of being part of crimes. Authorities can seize cold wallets, computers, and servers storing crypto. This process will apply during both investigations and to enforce court rulings.

Russia Plans to Finalize Broader Framework by July

Though the crypto seizure bill is advancing quickly, Russia is still working on a broader regulatory framework for digital assets. Lawmakers aim to approve a comprehensive crypto law based on the Central Bank’s latest concept by July 1, 2026. The Central Bank published its proposed approach in December.

This future law will recognize digital currencies and stablecoins as “monetary assets” but ban their use as legal tender. Anatoly Aksakov, head of the Financial Markets Committee, said lawmakers are focused on regulating mining, issuance, and transactions. He confirmed the first reading of that bill will happen within a month.

The bill also proposes limiting crypto purchases by non-qualified investors to 300,000 rubles annually, although that cap is still under review. Officials plan to define civil, financial, and possibly criminal liabilities for unauthorized activity in separate legal acts. Russia’s approach reflects a more structured stance on the market following international sanctions.

Legal Recognition for Crypto Ownership Confirmed

While regulation is still forming, Russia’s Constitutional Court recently ruled in favor of crypto owners’ property rights. This includes the right to legal protection in court proceedings. The decision supports the recognition of digital assets as part of individuals’ personal property.

This recognition aligns with the draft seizure bill, which also defines crypto as property under criminal law. Lawmakers want seizure mechanisms that reflect international practices and legal standards. The government submitted the draft bill in April 2025, passing two readings since.

Parlamentskaya Gazeta reported that the current lack of legal status has hindered law enforcement from pursuing claims against digital currencies. The new bill addresses that issue directly by giving clear authority to investigators. It allows them to secure civil claims or state confiscation through digital currency seizure.

According to RBC, this law will give courts and agencies consistent tools to manage digital evidence and assets. The United Russia party emphasized that this legislation follows international guidelines. The bill is now set for its third and final reading in the State Duma.

The post Russia Moves to Enable Crypto Seizures Before Full Regulation Set appeared first on CoinCentral.