Russia Moves to Classify Cryptocurrency as Seizable Property Under Criminal Law

Russia's State Duma has approved, in a third and final reading, legislative amendments formally recognizing cryptocurrency as property and as physical evidence under the country's Criminal Code and Criminal Procedure Code. The changes establish a legal basis for the seizure and confiscation of digital assets obtained through criminal activity.

Under the new law, digital currency is explicitly treated as property for criminal law purposes, allowing investigators to impose arrests on crypto assets and seize them during criminal proceedings. In practical terms, cryptocurrencies linked to crimes can now be confiscated in the same way as other forms of illicit property.

The amendments also set out procedural safeguards for handling seized crypto. Confiscation must be carried out with the involvement of a specialist, while any physical medium containing digital currency or access credentials must be seized, sealed, and stored under conditions that preserve the assets and prevent unauthorized access to sensitive information.

Investigative records will be required to specify the type and amount of digital currency involved. Where assets are transferred to a blockchain address, investigators must also document sender and recipient addresses and other data necessary to identify the transaction.

The move follows earlier policy discussions on how seized crypto should be used. In March last year, Evgeny Masharov, a member of Russia's Civic Chamber and head of the Association of Forex Dealers, suggested that confiscated cryptocurrencies could be placed into a dedicated state fund, with potential gains later directed toward social projects.

Taken together, the amendments signal Moscow's intention to close legal gaps around crypto-related crime, bringing digital assets more firmly within the scope of traditional criminal enforcement tools.