Russia considers reforming its legislation to allow the confiscation of cryptocurrencies

Key facts:
  • The authorities planned to amend their criminal legislation.

  • Russia is apparently shielding itself from the possible mass exodus of Bitcoin miners from China.

The Russian Parliament is developing a series of amendments to its criminal legislation with the aim of allowing the confiscation of cryptocurrencies, which –in the opinion of the body– have become a source of income for criminal activities.

The announcement was made on July 7, 2021 by the attorney general of the Russian Federation, Igor Krasnov, which was reviewed by the Tass news agency. The official said that” the criminal use of cryptocurrencies in Russia is a serious challenge, “which is why he underlined the adoption of the law” On digital assets, ” which came into effect last January, as an important step in this direction.

Krasnov added the following:

We are currently working on the reform of criminal law and criminal procedure. This will allow the application of restrictive measures as well as the confiscation of virtual assets.

The official expressed these ideas during his speech on Wednesday at the Conference of Chief Prosecutors of European States, which opened in St. Petersburg. There he pointed out that cryptocurrencies were used for corruption, including bribes.

Krasnov, for whom cryptocurrency exchange is a way to launder stolen money from the nation’s budget, indicated that the law has become a breakthrough in the fight against the problem, but thinks that new amendments to the Criminal Code would provide additional protection.

Russia legalized the use of cryptocurrencies this year

The regulation of cryptocurrencies in Russia took some time to be discussed, but it was not until January of this year that they were legalized, considering them “digital rights that comprise money claims” before the digital Financial Assets Act, as CriptoNoticias reviewed.

In 2020, a decree by That nation’s President Vladimir Putin forced public officials to declare their holdings of bitcoin and others cryptocurrency, as reviewed by CriptoNoticias.

On that occasion, the head of State of Russia recommended that federal and regional government agencies, the Central Bank, extrabudgetary government funds and state corporations, use the new decree as a guide to your income statement.

For its part, the lower house of the Russian parliament, the State Duma, approved in its first reading a draft law where the payment of tax for owning cryptocurrencies was contemplated.

The initiative considered that individuals or companies that have made transactions of more than 600,000 rubles (USD 8,100) per year, they would be required to file a statement about their activities in crypto assets.

Russia seeks further regulation as Bitcoin miners leave China

The news about the regulation of cryptocurrencies in Russia comes amid the repression unleashed by its neighboring country, China, against this industry. Precisely Russia is one of the countries that is being considered by bitcoin miners to move their operations.

In this way, it seems that the government is legally shielded against a possible mass exodus of bitcoin miners, from China to its territory. The Asian nation has set restrictions on bitcoin mining by when it considers this activity to represent a threat to your ecological plansrevealed a Chinese-American research team that studied the environmental impact of the mining industry.

The group of researchers calculates that the miners will have withdrawn from Chinese territory by 2024, moving their operations to other countries.

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