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Russia Sets Rules to Convert Seized Bitcoin Into State Revenue
Thursday, April 3 2025
Russian authorities have created a legal process to convert seized Bitcoin into state revenue. This move follows the confiscation of 1,032 BTC in a high-profile bribery case, establishing a crucial precedent.
In a meeting at the Federation Council Committee on Constitutional Legislation and State Building, Dmitry Aristov, head of the Federal Bailiff Service (FSSP), labeled Bitcoin as a “problematic asset.” However, he also confirmed that his agency has devised methods to sell seized Bitcoin and add the proceeds to the Treasury. The FSSP is currently working with other organizations to finalize this process.
The decision marks a significant shift in Russia’s handling of cryptocurrencies. It comes after the confiscation of 1,032 BTC during an investigation into a bribery case involving Marat Tambiev, a former Russian investigator who was sentenced to 16 years in prison and had his funds transferred to the Treasury in January.
Aristov emphasized that lawmakers must create a comprehensive legal framework defining the status of Bitcoin in Russia before expanding seizure protocols. The move has sparked controversy, with some experts calling for clearer regulations on crypto assets.
Russia has struggled to regulate cryptocurrency. Last year, lawmakers passed two crypto-related laws – one recognizing crypto mining as a legitimate business and another permitting firms to use crypto for international trade within a Central Bank-controlled sandbox. However, existing restrictions still prohibit the use of cryptocurrencies as a payment method within Russia.
The recent Bitcoin seizure underscores the need for Russia to address its stance on digital assets. The country is now considering new laws that would treat cryptocurrencies like property in criminal cases. Some officials propose creating a state fund from seized crypto proceeds, with the aim of supporting social programs.
Russia’s stance on cryptocurrency remains divided. With this move, bailiffs now have a process to convert Bitcoin into cash; however, broader regulations continue to be uncertain, leaving many wondering what lies ahead for Russia and its crypto sector.
Source: https://cryptotale.org/russia-sets-rules-to-convert-seized-bitcoin-into-state-revenue/
