In both controlled and decentralized finance, the crypto industry contains many digital assets. Even yet, some criminals choose to steal from legal merchants who hope to benefit from the market. With these actions in the crypto industry unlikely to stop anytime soon, nations all around the globe are looking for rules to combat them. Russia has stated that it would sign a new bill into law to allow for the lawful confiscation of digital assets obtained from harmful actors.
The Attorney General wants the bill to become part of the criminal code.
According to a local news outlet, the modification is now being worked on at Russia’s Attorney General’s office. According to a statement made by Russia’s Attorney General, Igor Krasnov, various reforms are in place to make the theft of digital assets a criminal violation. If this bill is passed, Krasnov believes it would herald the start of a legal seizure of stolen or unlawfully obtained digital assets in the nation.
During judicial procedures, Russia continues to see digital assets as property. Krasnov believes that this leaves insufficient space for executing the law. Further, Krasnov thinks that the government will have a legal definition of cryptocurrency in the next years. He also feels that including digital assets under a portion of the criminal code will aid this effort.
Russians are abandoning centralized exchanges in favor of decentralized exchanges
This isn’t the first occasion Russia has planned to introduce such legislation in the legislature. According to several involved parties in the nation, this rumor has been circulating since 2019 without making any progress. The regulation is not currently in effect, according to Nikita Shoshnikov, a leading official of the Alfacash crypto market. Currently, the nation is selling digital assets taken from criminals in the area.
She said, however, that this does not rule out the possibility of continuing to take them in the absence of a legal framework. The seizure of $1 million worth of Bitcoin from two FSB investigators is a good example. Even if the nation has the legal authority to recover digital assets held in cold wallets, retrieving cryptocurrency from centralized exchanges would be difficult. With more Russians entering the DeFi sector, nevertheless, there seems to be a window for yet another arduous process of confiscating stolen assets.