New Legislation Signed into Law
Russian President Vladimir Putin officially signed a new law on February 25, 2026, empowering Russian courts to confiscate cryptocurrencies during criminal investigations. This legislative act amends the country's Criminal Code and Criminal Procedural Code, formally classifying digital assets such as Bitcoin as 'intangible property.' The law is set to take effect ten days following its official publication.
Legal Framework for Digital Asset Seizure
The newly enacted law provides a clear legal basis for investigative authorities to seize and freeze digital assets implicated in suspected criminal activities. Prior to this, the confiscation of cryptocurrencies often relied on existing protocols without explicit legal codification. Deputy Minister of Justice Elena Ardabyeva noted that the law formalizes these existing digital asset confiscation practices within the legal framework.
Key provisions of the law include:
- Classification of cryptocurrencies as 'intangible property,' allowing them to be treated similarly to other assets in criminal proceedings.
- Mandatory inclusion of detailed information in confiscation requests, such as the type and quantity of tokens, and associated wallet addresses.
- Authorization for law enforcement personnel to transfer seized crypto assets to government-controlled wallets.
- Provisions for authorities to take control of physical devices, including servers, computers, and hardware wallets, linked to digital assets.
Broader Regulatory Context and International Cooperation
This move is part of a broader effort by the Russian Federation to overhaul its legal and regulatory framework for digital assets. The law also establishes a legal channel for cooperation with overseas cryptocurrency exchanges, a critical component given the global nature of digital asset transactions. Experts suggest that this development could precede further actions, including potential measures to block Russian citizens' access to foreign cryptocurrency exchanges later this year.
While the new law addresses confiscation, the longstanding ban on using cryptocurrency for domestic payments in Russia remains in place. Broader regulations concerning other crypto-related activities are anticipated to be implemented by July 1, 2026. Furthermore, by July 1, 2027, unlicensed intermediary activity in the crypto sector will face criminal penalties, including significant fines and potential prison terms for organized violations.
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