In a significant legal development, Russia’s Supreme Court is advancing legislation to classify digital currencies as property within criminal proceedings. This initiative aims to enhance law enforcement’s ability to track, freeze, and confiscate illicit crypto assets, marking a pivotal shift in the nation’s approach to digital finance.
Supreme Court Pushes for Stronger Legal Framework on Digital Assets
Russia is taking a bold step toward integrating cryptocurrencies into its legal system. The Supreme Court is drafting new legislation that will classify digital assets as property in criminal proceedings, allowing authorities to track, freeze, and confiscate illicitly acquired crypto. This move signals a major shift in Russia’s approach to digital finance and crime prevention.
Crackdown on Crypto Crimes
During an annual assembly of judges, attended by President Vladimir Putin, Supreme Court Chairperson Irina Podnosova emphasized the growing number of crimes involving digital currencies. Whether used as a tool, target, or proceeds of illegal activities, cryptocurrencies have become a significant factor in financial crimes. To combat this, Russia is enhancing its legal mechanisms to better regulate the sector and curb illicit transactions.
A Changing Stance on Crypto Regulation
Russia’s stance on cryptocurrency has fluctuated over the years, shifting between strict regulations and cautious acceptance. In November 2024, President Putin signed a law recognizing digital currencies as taxable property, imposing a 13% to 15% tax on crypto sales while exempting mining and sales from VAT. The Supreme Court’s latest move builds on this framework, ensuring law enforcement agencies have the legal backing to seize illegal crypto funds.
Aligning With Global Crypto Policies
As digital assets continue to reshape financial markets worldwide, governments are refining their regulatory frameworks. Russia’s latest move aligns with a broader global effort to bring cryptocurrencies under clearer legal definitions. Countries worldwide are introducing measures to prevent fraud, money laundering, and other financial crimes tied to crypto.
Crypto as a Tool for Sanctions Evasion?
While Russia strengthens its crypto crime laws, the country is also exploring digital assets as an alternative financial channel. Finance Minister Anton Siluanov confirmed that Russian businesses have started using Bitcoin for international payments, a strategic response to Western sanctions. This dual approach—tightening security while leveraging crypto for global trade—adds another layer of complexity to Russia’s evolving digital asset policies.
The Road Ahead for Crypto in Russia
Despite its regulatory advancements, Russia faces challenges in fully controlling the decentralized world of cryptocurrencies. Crypto transactions are borderless, making enforcement difficult without global cooperation. However, classifying digital assets as property in criminal cases is a crucial step toward bringing clarity and structure to Russia’s digital economy.
By strengthening its legal framework, Russia aims to strike a balance between innovation and security, ensuring that crypto remains a viable yet controlled financial tool in the years to come.
Nikolai Carter
