Russia advances bill allowing crypto seizures before full regulation

Draft law introducing a mechanism for cryptocurrency seizure in Russia is advancing faster than the comprehensive framework for the whole market.

The legislation has been greenlighted for adoption by an important parliamentary committee, while the other crypto-related acts will be passed by the summer.

State Duma committee recommends final adoption of crypto seizure law

Russia seems intent to make sure it has procedures for cryptocurrency arrest in place even before transactions with digital coins are properly regulated.

The Committee on State Building and Legislation at the lower house of Russian parliament, the Duma, has recommended the adoption of a bill establishing rules for confiscation of cryptocurrencies as part of criminal proceedings.

According to a statement issued by the committee’s press service on Monday, it’s designed to reduce the risk of using digital currencies in criminal activities, including money laundering, corruption, and terrorist financing.

The government-proposed document, which the chamber is now expected to pass on third and final reading, aims to recognize crypto and other digital assets as property under Russia’s Criminal Law and Criminal Procedure Law.

The lack of a clear definition of the property status in the two, which has been already provided in other Russian laws, is complicating the investigation of crimes and the enforcement of property claims, the press release noted, quoted by the Parlamentskaya Gazeta newspaper.

To resolve the issue, the bill suggests regulating the actions of investigators regarding digital currency deemed subject to seizure.

It also grants relevant bodies the authority to seize coins by either taking control over physical devices such as servers, computers, and cold wallets, or by transferring them to a dedicated wallet.

The legislation effectively introduces a complete mechanism for seizing digital currency for the purpose of subsequent confiscation by the state or to secure a civil claim.

In a statement released by the parliamentary faction of the ruling “United Russia” party on Telegram, the legislative committee’s chair, Pavel Krasheninnikov emphasized:

The federal government submitted the crypto seizure bill to the State Duma in April 2025, the business news outlet RBC recalled in an article. The draft was passed on first reading in June and on second reading in November.

Russia prepares for complete crypto regulation this year

Work is already underway to adopt a comprehensive framework for cryptocurrency transactions in Russia, where regulators have gradually changed their attitude toward decentralized digital money under the influence of sanctions.

The legislation will be based on the Central Bank of Russia’s new regulatory concept, published by the monetary authority in late December, and slated for adoption by July 1, 2026.

The policy envisages recognizing cryptocurrencies and stablecoins as “monetary assets” and expanding investor access to a strictly controlled market for digital assets, as previously reported by Cryptopolitan.

Also quoted by the official publication of the Russian parliament, the head of the State Duma Committee on Financial Markets, Anatoly Aksakov, revealed that lawmakers intend to first approve the rules for the creation, mining, and circulation of cryptocurrencies.

This bill, which will also ban their use as a means of payment inside the country, will be considered on first reading within the next month.

“We plan to define administrative, financial, and, quite possibly, criminal liability for illegal activity in this market in separate legislative acts,” the prominent lawmaker pointed out.

The legislation will ultimately allow non-qualified investors, in other words, ordinary Russians, to legally acquire crypto assets like Bitcoin, although their purchases will be limited.

An annual cap of 300,000 rubles (less than $4,000) has been proposed, but the threshold is still subject to discussions and may be changed eventually.

Meanwhile, the Constitutional Court of the Russian Federation recently upheld the property rights of cryptocurrency owners, including the right to judicial protection.

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